Smooth Fractal Average
Smooth Fractal Average expands criteria of defining a support or a resistance level based on Moving Averages (EMA, SMA, SSMA, LWMA) for the high price and the low price.
When an increasing moving average of the high price changes towards down then immediately a resistance level is defined.
Similarly for a moving average of the low price, the support levels are established when the low price moving average pretends to increase.
Therefore, after a change of slope in the MA of the high/low price a resistance/support level is established.
- Allow to define resistance and support based on a less volatile price behavior.
- Excellent for traders performing with moving averages.
- The upper and lower MA can be specified for any period. Therefore, it can help long term investors to define resistance/support levels from scalpers.