Notification Publishing copyrighted material is strictly prohibited. If you believe there is copyrighted material in this section you may use the Copyright Infringement Notification form to submit a claim.
The basic Fractals are created with 5 or more bars. With 5 bars, if the highest high is in the middle of the two lower highs on each side an up fractal is generated. Conversely, a down fractal is created when the lowest low is in the middle of two higher lows on each side. Since the fractal can only be created two bars later it is considered a lagging indicator, but if it is assumed that the reversal will last for more bars then the trend will remain as is.
The Average True Range (ATR) is an indicator that measures volatility. A volatility formula based only on the high-low range would fail to capture volatility from gap or limit moves. Wilder created Average True Range to capture this "missing" volatility. It is important to remember that ATR does not provide an indication of price direction, just volatility.
Trend Indicator showing an Up Trend when the current close price is higher than the main trend line in uptrend and a Down Trend when the current close price is lower than main trend line in downtrend. The main trend line in uptrend equals to the median price plus a multiple of the average true range and the main line in downtrend equals the median price minus the multiple of the average true range.
TrendMagic is a trend indicator based on the calculation of Commodity Channel Index and Average True Range.
This indicator works similar to Parabolic SAR so it's very useful to set up your stops or even building a complete trading strategy.
Donchian Channels is a volatility indicator based on the calculation of the current price range with the help of the recent highest and lowest prices.
All that is needed to calculate the Channel is to find the highest maximum and the lowest minimum for a definite period.