Flux Charts SFX Algo
The SFX Algo is the most popular indicator in the Flux Charts premium indicator suite. It contains a variety of customizable settings and features to help users make smarter decisions when trading.
Features
Signal Sensitivity
Signal Strength
Time Weighting
Take Profit Signals
Automatic Stop-Loss
Trend Dashboard
Buy/Sell Signal Star Ratings
Volatility Bands
Trend Colored Candles
Alerts
General SFX Algo Settings
Signal Sensitivity
Sensitivity is a key parameter that influences the number of signals the indicator generates. By adjusting this parameter, you can control the frequency of signals produced by the algorithm. Lower values result in more signals, while higher values lead to fewer signals. Experiment with different values to find the right balance for your trading needs.
Signal Strength
Signal Strength determines the robustness of the trading signals generated by the indicator. A higher value filters out weaker signals, resulting in fewer, but potentially more reliable trading opportunities. On the other hand, a lower value allows for a wider range of signals, including weaker ones. Finding the right balance between signal strength and quantity of signals is important for optimizing your trading strategy.
Time Weighting
Time Weighting allows you to choose the type of historical data the indicator considers when generating signals. Long-term Trends rely more on past data, while Mixed Trends combine historical and recent data. Recent Trends focuses primarily on the most recent price movements in the market. You'll want to consider your trading style and timeframe when choosing your Time Weighting preference.
Take Profit Signals
The SFX Algo displays up to three take profit levels for your trades. In the Take Profit settings, you can define up to three profit-taking levels for your trades.
You can set specific price level or percentage gain at which you would like the indicator to generate a take profit signal. You have the option of choosing between a set dollar price movement in any selected ticker or a set percentage movement for the take profit signals.
You can also enable the 'Repeat Take Profits' setting if you wish to be alerted when price revisits a take profit level after hitting it already. This is a useful feature for traders who like to move their stop loss levels after taking profits in an open trade.
Automatic Stop Loss
The Automatic Stop-Loss feature will print a stop loss label on your chart when the algorithm detects a shift in the market trend's momentum. You can adjust the Risk Tolerance, choosing between Low, Medium, and High. A high risk tolerance will result in stop losses being triggered less often.
If the Automatic Stop-Loss feature is enabled, the algorithm will also automatically detect re-entry points if found. For example, if the algorithm printed a Sell Signal and was shortly followed by an Automatic Stop-Loss, then it's possible for the algorithm to re-enter with another Sell Signal. These re-entries will be displayed on your chart.
Trend Dashboard
The Trend Dashboard displays the current SFX Algo trading signal across seven different timeframes. This allows traders to view the overall market direction without having to switch between timeframes constantly.
The dashboard will display the timeframe and either Bull, highlighted in green, or Bear, highlighted in red. Bull means the algorithm is detecting a bullish trend, while Bear means the algorithm is detecting a bearish trend.
You can enable/disable the dashboard with the click of a button in the settings. You can also adjust the size of the dashboard and the location.
Buy/Sell Signal Star Ratings
The SFX Algo will automatically assign a rating to each signal, between 1 and 5. This rating quantifies the overall strength of the signal based on the combined analysis of various market metrics. A higher star rating indicates a stronger signal, while a lower rating suggests a relatively weaker signal.
Volatility Bands
Volatility Bands are a visual overlay within the Flux Charts SFX Algo indicator that can help traders in identifying potential price movement. These bands are designed to highlight periods of increased or decreased price volatility, aiding in decision-making.
The Volatility Bands consist of multiple colored regions that adjust based on market conditions. These bands represent different levels of volatility.
The color gradients within the bands indicate varying degrees of volatility. For instance, shades of green and red represent different volatility levels. The areas between the bands can provide insights into potential price movement. When the price approaches or enters a specific volatility band, it might suggest different levels of market activity and potential market reversals.
How to Use The Volatility Bands
Wide Bands:
Wide spacing between the upper and lower volatility bands suggests that the market is experiencing higher volatility.
During periods of wide bands, price movements can be more significant and rapid, indicating that the market is experiencing increased activity and uncertainty.
Tight Bands:
Tight spacing between the upper and lower volatility bands indicates lower volatility in the market.
During periods of tight bands, price movements are less volatile, suggesting that the market is in a calmer state with potentially more predictable price patterns.
Trend Colored Candles
This feature colors the chart candles based on the prevailing trend. Green candles represent bullish trends, while red candles indicate bearish trends. This visual aid helps you quickly identify the current market sentiment.
Alerts
You can setup alerts with the SFX Algo indicator for the following features:
Buy Signals
Sell Signals
Signal Rating Upgrade
Signal Rating Downgrade
Take Profit 1
Take Profit 2
Take Profit 3
Automatic Stop-Loss
Re-entry Signals
You can choose to receive notifications for these alerts via email, SMS, or through TradingView. These alerts help you stay informed about potential trading opportunities in real time without having to actively watch the charts all day.