1. Upper Band Average of Moving Average of the Close (add Standard Deviations) and Highest price reached in the prior period
2. Middle Band
Average of upper and middle bands
3. Lower Band Average of Moving Average of the Close(subtract Standard Deviations) and Lowest price reached in the prior period
When stock prices continually touch the upper DMR Band, the prices are thought to be overbought; conversely, when they continually touch the lower band, prices are thought to be oversold, triggering a buy signal. When using DMR Bands, designate the upper and lower bands as price targets.