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FibAlgo® - Adaptive Deviation Channels™
FibAlgo® - Adaptive Deviation Channels™
OVERVIEW
This indicator creates dynamic, statistically-driven support and resistance channels around a central Moving Average (MA). Instead of using fixed multipliers like Bollinger Bands, this tool builds a statistical model by analyzing how far past market peaks (Pivot Highs) and troughs (Pivot Lows) have deviated from the central average. The result is continuously adapting channels that define "extreme" price zones based on the market's current volatility and behavioral character. This offers a more reactive and data-driven approach compared to standard channel indicators.
CONCEPTS
The indicator's logic is based on three fundamental steps:
1. Core Analysis: Pivots and MA Deviation: The heart of the indicator is measuring how far the price moves away from its central mean.
First, it calculates a Moving Average (SMA, EMA, etc.) to represent the market's "centerline" or "mean value."
Next, it uses a ZigZag algorithm to identify significant market turning points (Pivot Highs - PH and Pivot Lows - PL).
At each identified pivot point, it calculates the percentage difference between the pivot's price and the Moving Average's value at that same moment, recording this "deviation" data. This process is repeated for hundreds of past pivots to create a rich statistical dataset.
2. Statistical Band Calculation: The width of the channels depends on how this collected deviation data is interpreted. The indicator offers you three different statistical models:
Average: The bands are placed according to the average deviation percentage of past pivots. This method shows where the market has typically reversed.
Standard Deviation: The bands use the statistical standard deviation of the deviations. This measures volatility and highlights true statistical "extremes," ideal for mean reversion strategies.
Most Frequent: It finds the most commonly occurring deviation percentage from the past and draws the bands accordingly. This method can identify repetitive, behavioral "exhaustion" points that the market respects.
3. The Professional Analysis Dashboard: The panel you see on the chart provides a summary of the indicator's "brain." From this dashboard, you can monitor the number of pivots included in the analysis (Sample Size), the average deviation distance for resistance and support zones, and the current percentage being used for the band width in real-time. This provides full transparency into the data behind the calculations.
FEATURES
Statistical and Dynamic Channels: Smart channels based on historical price behavior, not fixed multipliers, that continuously adapt to the market's character.
Multiple Calculation Methods: Three different band calculation methods (Average, Standard Deviation, Most Frequent) allow you to choose the statistical model that best fits your strategy.
Comprehensive MA Support: Full compatibility with 10 different Moving Average types, including SMA, EMA, WMA, HMA, and VWMA.
Advanced Analysis Dashboard: A professional information panel that provides a live summary of all statistical data used in the calculations (sample size, average deviation, band width, etc.).
Built-in Strategy Alerts: Integrated, customizable alerts for moments when the price breaks above/below the upper or lower channels.
Fully Customizable: Complete control over pivot detection sensitivity (PH/PL Period), the number of historical pivots to analyze (Historical Pivots), and all visual elements.
USAGE
This indicator can be used for both mean reversion and breakout strategies.
Mean Reversion Strategy:
Sell Signal: Wait for the price to touch or enter the Upper Band (Resistance Zone). Then, look for signs of a downward reversal (e.g., a reversal candle pattern) to target a return to the central Moving Average.
Buy Signal: Wait for the price to touch or enter the Lower Band (Support Zone). Then, look for signs of an upward bounce to target a return to the central Moving Average.
Breakout Strategy:
Bullish Signal: A strong, decisive candle close above the Upper Band can signal the start of a powerful bullish trend.
Bearish Signal: A strong, decisive candle close below the Lower Band can signal the start of a powerful bearish trend.
Tip: Before applying any strategy, check the "Sample Size" on the Analysis Dashboard. Calculations based on a sufficient number of pivots (typically 30+) produce more reliable results.
OVERVIEW
This indicator creates dynamic, statistically-driven support and resistance channels around a central Moving Average (MA). Instead of using fixed multipliers like Bollinger Bands, this tool builds a statistical model by analyzing how far past market peaks (Pivot Highs) and troughs (Pivot Lows) have deviated from the central average. The result is continuously adapting channels that define "extreme" price zones based on the market's current volatility and behavioral character. This offers a more reactive and data-driven approach compared to standard channel indicators.
CONCEPTS
The indicator's logic is based on three fundamental steps:
1. Core Analysis: Pivots and MA Deviation: The heart of the indicator is measuring how far the price moves away from its central mean.
First, it calculates a Moving Average (SMA, EMA, etc.) to represent the market's "centerline" or "mean value."
Next, it uses a ZigZag algorithm to identify significant market turning points (Pivot Highs - PH and Pivot Lows - PL).
At each identified pivot point, it calculates the percentage difference between the pivot's price and the Moving Average's value at that same moment, recording this "deviation" data. This process is repeated for hundreds of past pivots to create a rich statistical dataset.
2. Statistical Band Calculation: The width of the channels depends on how this collected deviation data is interpreted. The indicator offers you three different statistical models:
Average: The bands are placed according to the average deviation percentage of past pivots. This method shows where the market has typically reversed.
Standard Deviation: The bands use the statistical standard deviation of the deviations. This measures volatility and highlights true statistical "extremes," ideal for mean reversion strategies.
Most Frequent: It finds the most commonly occurring deviation percentage from the past and draws the bands accordingly. This method can identify repetitive, behavioral "exhaustion" points that the market respects.
3. The Professional Analysis Dashboard: The panel you see on the chart provides a summary of the indicator's "brain." From this dashboard, you can monitor the number of pivots included in the analysis (Sample Size), the average deviation distance for resistance and support zones, and the current percentage being used for the band width in real-time. This provides full transparency into the data behind the calculations.
FEATURES
Statistical and Dynamic Channels: Smart channels based on historical price behavior, not fixed multipliers, that continuously adapt to the market's character.
Multiple Calculation Methods: Three different band calculation methods (Average, Standard Deviation, Most Frequent) allow you to choose the statistical model that best fits your strategy.
Comprehensive MA Support: Full compatibility with 10 different Moving Average types, including SMA, EMA, WMA, HMA, and VWMA.
Advanced Analysis Dashboard: A professional information panel that provides a live summary of all statistical data used in the calculations (sample size, average deviation, band width, etc.).
Built-in Strategy Alerts: Integrated, customizable alerts for moments when the price breaks above/below the upper or lower channels.
Fully Customizable: Complete control over pivot detection sensitivity (PH/PL Period), the number of historical pivots to analyze (Historical Pivots), and all visual elements.
USAGE
This indicator can be used for both mean reversion and breakout strategies.
Mean Reversion Strategy:
Sell Signal: Wait for the price to touch or enter the Upper Band (Resistance Zone). Then, look for signs of a downward reversal (e.g., a reversal candle pattern) to target a return to the central Moving Average.
Buy Signal: Wait for the price to touch or enter the Lower Band (Support Zone). Then, look for signs of an upward bounce to target a return to the central Moving Average.
Breakout Strategy:
Bullish Signal: A strong, decisive candle close above the Upper Band can signal the start of a powerful bullish trend.
Bearish Signal: A strong, decisive candle close below the Lower Band can signal the start of a powerful bearish trend.
Tip: Before applying any strategy, check the "Sample Size" on the Analysis Dashboard. Calculations based on a sufficient number of pivots (typically 30+) produce more reliable results.
Script protetto
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script protetto
Questo script è pubblicato come codice protetto. Tuttavia, è possibile utilizzarlo liberamente e senza alcuna limitazione – per saperne di più clicca qui.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.