RFX Forecast Bands

The RFX Forecast Bands indicator calculates the three significant confidence levels, 99%, 95% and 68% of price movement for a configurable number of bars in the future. The essence of calculations is based on statistical analysis of the asset's recent price changes. These levels can be used for many different purposes in trading systems. For example, one can use them for setting the target profit and stop loss levels effectively. The extreme upper and lower bands represent 99% confidence level, which means that there is 99% chance that the future price movement stays within these bands. If price goes higher than the extreme upper band, or lower than the extreme lower band, it is supposed a significant change in the market structure (or a temporary change due to a high impact red news). The other bands corresponds to 95% and 68% confidence levels (see first picture below).

Input Settings

• Update Every Bars (min 1): A positive integer number that indicates after how many bars the indicator shall recalculate the bands. (default is 10).
• Forecast Horizon (min 3):  A positive integer number that indicates the number of bars that the indicator shall forecast bands for. (default is 20).
• Show Alert?: If it is set to true, when theclosed price exceeds the already set level (see Alert Level below), an alert will be generated.
• Send Mobile Notification?: If it is set to true, the closed price exceeds the already set level (see Alert Level below), the user will receive a push notification on his/her mobile phone.
• Send Email?: If it is set to true, when the closed price exceeds the already set level (see Alert Level below), the user will receive a push notification on his/her email address.
• Alert Level: User can select between the following three levels: { 1st Level, 2nd Level, 3rd Level }.