Mean Absolute Deviation Bands

The other way to build bands around price that uses Mean Absolute Deviation instead of Standard Deviation.
MAD is also a measure of variability, but less frequently used. MAD is better for use with distributions other than the Gaussian.

MAD is always less than or equal to Standard Deviation and the resulting bands are more tighter for the same parameters if we compare it to Bollinger Bands.


If you use band stops this can be useful.