If you're looking to step up your trading game, the Advanced Fractal Envelopes indicator for MetaTrader 5 is a tool you won't want to miss. This nifty indicator creates two envelopes based on the average prices of a set number of upper and lower fractals, along with a central line for reference.
Let’s break it down. The indicator features three main adjustable parameters:
- Average - This sets the number of fractals used to calculate the moving average based on their prices.
- Show Central Line - Toggle this option to display the central line.
- Show Fractals - This allows you to visualize the fractals on your chart.
Calculations:
Top = AvgFractUp
Bottom = AvgFractDn
Central = (AvgFractUp + AvgFractDn) / 2.0
Where:
AvgFractUp = SMA(SumAvgUp, Average)
AvgFractDn = SMA(SumAvgDn, Average)
SumAvgUp - sum of the prices of upper fractals within the Average number
SumAvgDn - sum of the prices of lower fractals within the Average number
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