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Santoren Bands™ (SB) is a trading system based on relationships between bands of moving averages. The purpose of the system is to visualize the changes of momentum at various stages of a trend and to construct entry/exit strategies based on specific formations presented in such charts. SB is used in addition to traditional technical and fundamental analysis.
The main focus of SB is studying interactions of price and two key bands, which represent shorter and longer averages. The price activity within a space between these bands defines various SB objects.
The following pages illustrate basic terms used throughout the system and the interpretation of these formations.
SB uses the momentum of bands to generate calls before the clear trend is established. Throughout the process, the development of the pattern is used as a confirmation of the direction ofthe trend, leading to adjustments of exit levels.
SB can be applied to any length charts (monthly, weekly, daily, 1-min., etc.)
The scope of this document is limited to long entries only. When shorting the equity, one needs to reverse the structures to determine the entry and exit areas. For example, the Baby Whale formation becomes a short formation of Reverse Baby Whale.
Here is an annotated chart of the S&P 500 with Santoren Bands:
You can follow my live SB charts at:
© Tomas Leszczynski
CEO, Santoren Inc.