Fractal-Based Moving Averages and Standard Deviation Bands

Summary

This indicator applies Bollinger-style calculations to confirmed swing highs and lows. BarsBefore and BarsAfter define the neighboring bars used to recognize a fractal; the selected fractal prices are then averaged over a configurable period, with bands placed a chosen number of standard deviations from that average. The document also describes a mode that calculates separate averages and bands for high and low fractals, instead of combining both types into one series.

The included implementation uses a population standard deviation over the selected fractal observations and holds the latest calculated values between updates. A fractal is only identified after the configured following bars have passed, so signals are inherently delayed. The document explains indicator settings and calculation behavior but supplies no trading rules, performance tests, or evidence that the bands predict price movement. It also notes that the indicator requires ProRealTime version 11 or later.

Key ideas

• BarsBefore and BarsAfter specify how many neighboring bars define a swing high or swing low fractal.
• The indicator calculates a moving average and standard deviation bands from the most recent selected fractal prices.
• A combined mode uses high and low fractals together, while a separate mode derives the upper band from highs and lower band from lows.
• Fractals are confirmed only after subsequent bars occur, which delays their identification.
• The document describes indicator mechanics but provides no strategy evaluation or evidence of trading performance.

Tags

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