Flare Indicator: Power-Curve Bands and Price Position

Summary

Flare draws a fan of curved bands anchored to a historical close. The user sets the curve width, the number of bars back used for the anchor, and the power and step parameters that shape the curves. The script compares the current close with successive boundaries and assigns a direction state and color: stronger readings appear as price extends beyond more outer boundaries, while intermediate or neutral readings receive other colors. Optional labels and background coloring make the state visible on the chart.

This is a visualization rather than a defined trading system: the document gives no entry, exit, or position-sizing rules and reports no performance testing. The power curves are generated from configurable mathematical offsets around the anchor, not estimated volatility bands. Interpretation therefore depends heavily on parameter choices and the instrument’s price scale; the source offers no evidence that a particular color or boundary crossing forecasts returns.

Key ideas

• The indicator draws multiple power-shaped curves above and below a selected historical close.
• Width, anchor lookback, power, and step settings control the displayed fan.
• The current close’s position relative to the curve boundaries determines a direction state and color.
• Labels and optional background shading provide additional visual cues.
• The bands are a configurable display and are not presented with trading rules or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.