Fractal breakout level
Purpose and functions of the indicator
The indicator determines and marks the moments of trend change on a chart based on the theory of fractal levels breakdown on any time frames. If a breakdown based on all rules is real, the horizontal lines will appear on the chart with corresponding color. If there is an up trend, the line will be blue. In the descending trend the line will be red. The blue line is a strong support level, the trader should look for buying opportunities above this line. The red line is a resistance level, the trader should sell below it.
Stop-loss with a buy trade should be set under the lowest low below the blue line. Stop-loss for a sell trade should be set on the highest high above the red line. The color change of the line notifies the trader about a trend change. All the fractals and their breakdowns that are located between these lines do not represent the change of trend. If the line appears on a larger time frame, it has higher priority than the smaller ones. When the line is formed on daily chart, the trader should look for buying/selling opportunities on the smaller time frames
- nBarHist=200 — Quantity of bars from analyzed history.
- ShowSignal=OnlyFirst\All — Method of displaying the lines on the history. "OnlyFirst" — displays only two last lines of trend change. "All" — all the changes of trend
- ClrBuy=clrBlue — Color of line in the upward trend. Blue color is default.
- ClrSell=clrRed — Color of line in the descending trend. Red color is default.
- Width=2 — Thickness of the beam.
- bCheckBar0=true\false — Display the line when the bar hasn't closed yet. "True" is set by default. Function for trader to be prepared for the signal.
The indicator is a self-sufficient trading system. It is recommended to be used as a filter of trading signals in the software package which consists of the following products: