How to build Acceleration Bands as a custom indicator using the Strategy Builder

The Acceleration Band indicator is a powerful tool for traders to assess the volatility and potential trend reversals in the financial markets. In this guide, we'll walk you through the process of creating the Acceleration Band indicator within our drag-and-drop Strategy Builder, and we'll provide step-by-step instructions for formulating the necessary mathematical expression.

The formula for the upper band is:

Upper Band = SMA * (1 + (High - Low) / (SMA))

The formula for the lower band is:

Lower Band = SMA * (1 - (High - Low) / (SMA))

Where:

SMA - Simple Moving Average

High - High Price

Low - Low Price

Now, in order to do this with Vestinda Strategy builder you just need to drag the indicators, operators and parenthesis inside the Conditions area.

A way to trade Acceleration Bands would be to enter a position when the price closes above the Upper Band and exit when the price goes below the middle point of the bands which is the SMA.

You can take the strategy as a template from the library here: https://app.vestinda.com/templates

Search for the Acceleration Bands template and click on Use Template.