Fractal Chaos Bands

A statistical envelope - standard deviation, ATR percent, a fixed percent of price - is sized off an average, not off what price has actually done. Fractal Chaos Bands take the other approach: the upper band holds the price of the last confirmed 5-bar Williams fractal high, and the lower band holds the last confirmed fractal low, each one stepping to a new level only when a new qualifying fractal confirms. A break of the upper band therefore means something concrete - price has genuinely exceeded the last confirmed swing high - rather than "moved some multiple of an average range," which is what a break of a statistical band actually means. A Williams fractal needs two bars on each side to confirm (the standard 5-bar definition), so the step at any given bar only ever uses information that was genuinely available as of that bar - the two confirming bars have already closed by the time the band updates. Once written, a bar's band value never changes again; this is a non-repainting structural indicator, not a lagging statistical one. Notes and limitations - Non-repainting: every step uses only the two confirming bars that have already closed, and no value is revised afterward. - The bands can sit a long way from current price during a strong, one-directional trend, since the opposite-side fractal simply has not updated in a while - that gap is informative (it shows how far back the last opposing swing was), not a defect. - Purely a structural reference. It draws no arrows and sends no alerts.

Indicator · MT4 · v1.0 · Free

Tags: ATR · Fractals · Channels & Envelopes · MT4 Indicator · MQL4 Source Code

MetaTrader 4 & 5 indicators · PolyMaria