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The BS Living Now indicator is a powerful tool that highlights market extremes, much like the well-known Fractals indicator. If you’re not already familiar with Bill Williams’ Fractals, you can easily find them included in the standard set of indicators on nearly any trading platform. Once you add it to your chart, you’ll quickly see how these two indicators compare.
While they may look alike at first glance, the BS Living Now and the Fractals indicator differ significantly in how they identify those extremes. They utilize different filters in their calculations, which can lead to varied results on your chart.
What sets the BS Living Now apart is its customizable filter feature. This allows you to adjust the sensitivity and pinpoint more or fewer extremes based on your trading strategy. On the other hand, the standard Fractals indicator follows a strict formula outlined in Bill Williams’ writings, offering no options for adjustment.
Indicator Input Parameters:
//+----------------------------------------------+ //| Indicator input parameters | //+----------------------------------------------+ input uint iPeriod=10; // Indicator period input int Shift=0; // Horizontal indicator shift in bars
The larger the iPeriod parameter, the fewer extremes will be shown on your chart. Conversely, a smaller parameter will highlight more extremes. It’s crucial to find the optimal setting for the currency pair you're trading before diving in.
Using the Indicator in Trading:
Think of the BS Living Now indicator as your trading assistant, marking key levels on your chart. If you take a look at historical data, you’ll notice that in uptrends, each peak is higher than the previous one, while in downtrends, each trough is lower.
This insight allows you to identify the right trend and, with the help of the BS Living Now indicator, you can not only determine ideal entry points but also add to your position during breakouts of each new extreme.
Good money management is essential here. Consider starting with a larger lot size for your initial trade and then using smaller lots for subsequent trades. This way, if the market suddenly reverses, your losses on smaller trades are minimized while your larger position can still yield a profit, increasing your chances of closing in the green.
Fig.1. The BS Living Now indicator
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