Trading Fusion Bars 2 is a technical indicator designed to confirm market trends and generate trading signals based on multiple technical tools. It integrates the following indicators:
- Exponential Moving Averages (EMA 50 and EMA 200) to identify trend direction
- Average True Range (ATR 14) to measure market volatility and filter signals
- Relative Strength Index (RSI 14) to detect overbought or oversold conditions
- Moving Average Convergence Divergence (MACD 26,12,9) to confirm momentum strength
Visual elements include color-coded bars representing trend strength (blue shades for bullish, red shades for bearish, gray for no trend), optional mini trend lines showing each bar’s high/low, and optional arrows indicating buy (green up arrow) and sell (red down arrow) signals.
Signal generation criteria:
- Buy signals occur when price is above both EMAs, RSI is above 50, MACD histogram is positive, and price jumps sharply (over 0.5 x ATR).
- Sell signals occur when price is below both EMAs, RSI is below 50, MACD histogram is negative, and price drops sharply (over 0.5 x ATR).
Alert options include sound alerts with customizable .wav files, on-chart text notifications, and optional email alerts (requires email setup in cTrader). This indicator is intended as a trend-confirmation tool, recommending users wait for multiple signals before trading.