Two popular bands around price action are the Keltner Band and Bollinger Band. Their difference is that Keltner band width is an average of true range and Bollinger band width is based on standard deviation of true range. This chart shows JMA traversing through a Keltner Band.

Bands allow more sophisticated analysis than mere crossover moving averages. In the image below, note the JMA line is sometimes red, blue or gray. Color depends on whether JMA is rising or falling, and whether it is above or below the Keltner band. Trading rules can take advantage of this dual logic.

• Different time frames on a chart may produce different results.

• Please do not ask us for indicator parameter settings. Every market is different.

• Past performance of any trading system is never a guarantee of future performance.

• All trading strategies have risk and commodities/futures trading leverages that risk.