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Averages, bands & statisticsAll lessons

STARC Bands

STARC Bands chart

What it is: Stoller Average Range Channels. A short 6-period average with bands two ATRs out. Manning Stoller.

Yes, this is Keltner with different numbers. Keltner uses a 20-period EMA and roughly 2 ATRs; STARC uses a 6-period SMA and 2 ATRs. Same construction, faster centre line. Being honest about that is more useful than pretending otherwise.

What the fast centre line changes: STARC hugs price. The bands are not trying to contain a whole swing — they mark the realistic boundary of the next few days. Stoller's framing was explicitly about RISK, not signals:

> *Buying near the lower band is the lowest-risk long available; buying at the upper band is the highest-risk long, whatever the trend says.*

Why that framing is worth more than the indicator: it does not predict anything. It says where you are in the distribution of entries, which is a question you can answer honestly at any moment. Most of the study library is trying to tell you WHAT will happen; this one only tells you what you are risking to find out.

Practical use: with a directional view from elsewhere, wait for the favourable band rather than entering at the signal. Same trade, better price, smaller stop.