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Standard Error Bands

VolatilityOverlays price

A band around the best-fit straight line, sized by the fit's error.

What it looks like

Drawn by running the real calculation over one sample series. Open a symbol and it is recalculated on that symbol's bars.

How to read it

The centre is the trend line of the recent window and the width is how far bars sat from it on average. A narrow band means the bars followed the line closely.

Where it misleads

If the window is not straight, the centre line itself is a stretch.

Default settings

Length21
Error multiplier2
Smoothing3

You can change these on the chart. These are the values it starts with.

In SQMATE

One tap to add

Open a symbol, tap the name in the indicator list and it is drawn straight away. You can stack several copies of the same indicator with different settings.

Recalculated per timeframe

Switch between minute, hourly, daily, weekly or monthly bars and it is recalculated on that timeframe. The maths runs over every bar loaded, so zooming never moves the line.

Use it as a search condition

Some indicators can also be used as an axis when searching for symbols — for example, keeping only symbols above a given reading, scanned every night.

Related indicators

Every indicator is an observation computed from past bars. It does not tell you future prices and it is not investment advice.

Standard Error Bands — what it means and how to read it | SQMATE