Levels on Fractals with Bands Filter
- Indicators
- Sergei Iakovlev
- Version: 1.1
- Updated: 16 May 2024
Levels on Fractals with Bands Filter is levels based on fractals filtered with Bollinger Bands indicator.
The Levels on Fractals with Bollinger Bands Filter is a technical analysis tool that uses a combination of fractals and the Bollinger Bands indicator to identify support and resistance levels.
How to use it.
When a fractal forms behind the outer Bollinger band (volatility breakout) it indicates that price has reached an extreme level and may change direction.
These levels can be used as support and resistance levels.
If a fractal forms above the upper Bollinger band, it can be a resistance level, and if it forms below the lower band, it can be a support level.
This indicator can be useful for traders who use strategies based on support and resistance levels, as well as for those who prefer to trade on market edges.
To better filter the fractals used to build support and resistance levels, you can modify Bollinger indicator parameters such as period and deviation to better match current market conditions and get more reliable signals.
Input parameters:
Period - moving average period.
Shift - horizontal shift of the indicator
Deviation - number of standard deviations
a very useful indicator