Fractal Channel

Fractal Channel indicator is a VertexFX client side VTL indicator which uses the concepts of fractals and channels. It provides the current trading range, within which the market is likely to trade.

The narrower the channel, the greater is the probability of a breakout outside of the channel. Traders must use other trending following or breakout indicators to determine the direction of a potential breakout when using this indicator.

Fractial Channel indicator consists of three components, the Upper Channel, the Lower channel, and the Mean price. The Upper Channel is the most recent Fractal High whereas the Lower Channel is formed by using the most recent Fractal Low. Fractal Highs and Lows are strong resistance and support levels which are not easily breached by the market. Hence there is a strong likelihood that the market will trade in the channel. As a new channel is formed, it is automatically detected and the trading range is adjusted. The center line is the mean of the upper and lower Channel.

This indicator DOES NOT provide BUY or SELL signals. It displays the typical range, support and resistance of the current trading range. It is useful for placing stop-losses, breakout entry trades when the channel is breached.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Files
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.