What it does
Standard Error Bands, developed by Jon Andersen, plot a linear regression line of price with bands set a multiple (typically 2) of the standard error above and below it. Unlike Bollinger Bands, the center is a regression fit rather than a moving average, so the bands measure how tightly price tracks its own trendline. Tight bands mean an orderly trend; widening bands mean the trend is getting noisy.
Typedraws on the price chart
How to add it
Click Indicators (ƒx) in the header.
Search “Standard Error Bands” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Tight, narrow bands around a sloping regression line confirm a strong, orderly trend; trade continuation in the slope's direction.
- Band widening after a tight trend phase warns of instability and possible trend change; tighten stops or take profits.
- In a confirmed trend, price tagging the band opposite the slope (e.g., lower band in an uptrend) is a pullback entry zone.
- Watch the center regression line's slope for direction and the band width for conviction — the two together grade the trend.
- Combine with momentum divergence: widening bands plus fading momentum is a strong exit combination.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Periods | number | 21 | 2–500 |
| Standard Errors | number | 2 | 0.1–10 |
| Method | select | Simple | Simple / Exponential / Weighted |
| Averaging Periods | number | 3 | 1–100 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Plot 1 | line | #2196F3 |
| Plot 2 | line | #FF6D00 |
| Plot 3 | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- The legend eye toggles it off without losing your settings — handy for before/after comparisons.
- Its price-scale label can be switched off per-indicator at the bottom of the Style tab if the axis gets crowded.
- Drag the indicator to its own pane from the legend ⋯ menu if it crowds the price chart.
Watch out for
- The regression center recalculates over the whole window each bar, so the bands can shift shape noticeably as old bars drop out.
- In sideways markets the bands balloon and give little edge; they are a trend-quality tool, not a range tool.