Chartists have long used price bands to assess buy and sell prices for a company. Charting analysis is popularly viewed as the domain of the day trader. However the technique may also be taken into account by fundamentalists.

The strategy of the day trader is to achieve gains in the short term which may be modest in percentage terms but significant when annualised. Preferred companies are likely to be those with prices that are volatile and change over short time periods within price bands.

The approach may also be considered by medium and long term investors. A strategy could be to use the bands to assess the buy price but combining the decision with an assessment of a company’s fundamental value.

Market Shares provides graphs and tables focused on price bands. They are based on standard deviations from the shares medium price for the period of your selection. The bands are provided based both on price and also weighted by trade volume.