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The Advanced Fractals Become Support/Resistance Breakout Alerts, which is better known as AFBSR Breakout Alerts, is often used in trading, as it is a very effective and useful indicator that allows making certain trades. Firstly, the indicator can be used in trading to find the optimal moment to open positions in the direction of the current trend, which is also determined using the indicator. Secondly, it is also perfect for determining support and resistance levels, thanks to which it can’t be only fully opened trades and be aware of the current market situation, but also correctly placed protective orders.
The indicator is based solely on the use of fractals, so its signals are considered very accurate. The indicator itself is displayed directly on the price chart in the form of a channel made up of two lines indicating support and resistance levels, as well as dots of a certain color, responsible for long or and short positions.
The AFBSR Breakout Alerts indicator is an effective trading tool that is suitable for any timeframes and currency pairs.
Input parameters
The AFBSR Breakout Alerts indicator has seven input parameters, which makes its settings advanced, which in turn allows adapting the indicator to own trading. The Colors section in its settings is responsible for its color scheme and value thickness.
- Frame - indicator periodization value. The default value is 5.
- Show support/resistance - parameter responsible for showing on the price chart the lines that are responsible for the levels of support and resistance. The default value is None.
- Allowed sides - indicator parameter responsible for visualization of icons with growth and fall values on the chart. The default value is Buy and Sell.
- Alerts enabled - the option to have a notification when an alert is received. The default value is Yes.
- Use alerts - the option to signal when the desired combination of conditions is received. The default value is Yes.
- Send mail - parameter responsible for notification in the form of an e-mail when a signal is received. The default value is No.
- Send push - notification parameter responsible for notifying the mobile device when a signal is received. The default value is Yes.
Indicator signals
The AFBSR Breakout Alerts indicator is designed to find the optimal moment to enter the market during a certain trend, as well as the formation of overbought and oversold levels. To open a certain trade, it is needed to take into account all the values of the indicator, namely the direction of the channel of the indicator lines, the color and location of the next formed point on the chart. These indicator values will characterize the current market trend. If an uptrend is determined, long positions are opened, and subject to the same conditions, when a downtrend is detected, a short position is opened.
Signal for Buy trades:
- The channel of the indicator lines is moving up. On the signal candle, which is close to the support level, a color point with a growth value is formed.
Upon receipt of such conditions, on the candle, on which the signal will be played, a buy trade may be opened, due to an uptrend. Stop loss should be set according to the resistance level, that is, along the lower border of the indicator channel. Such a trade should be closed after the next point is formed on the chart, which will allow opening a new trade in the direction with the current trend.
Signal for Sell trades:
- The channel, consisting of two lines of the indicator, moves down. A point with a color with a falling value is formed above the signal candle.
Upon receipt of such conditions, a sell trade is opened on the candle confirmed by the signal. A stop loss order should be placed at the support level, that is, at the upper border of the channel. The trade should be closed after a new point is formed on the chart, which will allow considering the opening of new trades after the change in the current downtrend.
Conclusion
The AFBSR Breakout Alerts indicator is not only effective, but also very convenient to use trading algorithm. Thanks to it, it can’t be only easily determine the current trend and open positions in its direction, but also determine support and resistance levels, while correctly placing protective orders. Before using the indicator in practice, despite the simplicity of its use, it is recommended to use a demo account.
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