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Flux Charts SFX Algo

SFX Buy-Sell Algo On TradingView Chart

The SFX Algo is the most popular indicator in the Flux Charts premium indicator suite. It contains various customizable settings and features to help users make smarter trading decisions. By the end of this guide, you’ll understand how to configure and use this tool effectively.

Features

  • Signal Sensitivity

  • Signal Strength

  • Time Weighting

  • Minimum Star Rating

  • Automatic Take-Profit Levels

  • Automatic Stop-Loss Levels

  • Trend Dashboard

  • Volatility Bands

  • Retracement Wave

  • Trend Colored Candles

  • Alerts

General SFX Algo Settings

General SFX Algo settings

Signal Sensitivity

The sensitivity setting 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 Sensitivity: More frequent signals, which is ideal for capturing short-term opportunities.

  • Higher Sensitivity: Fewer signals and less sensitive to price movements, which is ideal for traders focusing on larger trends.

Signal Strength

The Signal Strength setting filters signals based on their quality, allowing traders to focus on the most reliable opportunities. This feature helps traders balance the quantity and reliability of the algorithm’s signals to suit their trading strategy.

  • Higher Signal Strength: Displays fewer signals by prioritizing those with higher signal ratings, reducing market noise.

  • Lower Signal Strength: Displays more signals, including those with lower signal ratings, for broader market coverage.

Time Weighting

The Time Weighting setting determines how the SFX Algo evaluates historical market data to generate signals.

  • Recent Trends: Focuses on the most recent movements for short-term analysis.

  • Mixed Trends: Balances recent and historical price movements for a comprehensive view.

  • Longterm Trends: Uses extended historical market data to identify broader market trends.

Minimum Star Rating

The Minimum Star Rating setting allows you to filter signals based on their strength, showing only those that meet or exceed your chosen threshold. For instance, setting the minimum star rating to 3 ensures you only receive signals with a rating of 3 stars or higher.

Automatic Take-Profit Levels

There are three take-profit methods to choose from with the SFX Algo.

Key Levels: Uses pivot points to set take profit targets. Take-profit levels will only be shown ahead of time when using this method. The other two take-profit methods only display in real-time when they are detected.

  • Volatility Bands: Sets dynamic targets using the Volatility Bands overlay

  • Signal Rating: Adjusts targets based on changes in a signal's rating strength.

Automatic Stop-Loss Levels

There are four stop-loss methods to choose from with the SFX Algo:

  • Key Levels: Uses pivot points to set stop-loss levels. These levels are displayed ahead of time when using the key levels method.

  • Volatility Bands: Stop-loss levels based on the Volatility Bands overlay.

  • Signal Rating: Sets stop-loss levels based on changes in a signal's rating strength.

  • Auto: A stop-loss label will be printed 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.

Take-Profit & Stop-Loss Level Settings

  • Show TP & SL Levels: Displays Take Profit (TP) and Stop Loss (SL) levels directly on the chart for better visualization. These levels are only displayed in advance when using the key levels method for TP/SL.

  • Extend All TP & SL Lines: Extends the TP and SL lines across the chart. This setting only works when using the key levels method for TP/SL.

  • Re-Entry After SL: Allows the algorithm to generate a re-entry signal if conditions align after a stop-loss has been triggered.

  • Exit After SL: Candle coloring will not be affected after a signal's stop-loss is hit. By default, this is turned off.

  • TP 1, TP 2, TP 3: Enables or disables individual take-profit levels, letting you customize which levels are shown.

  • SL: Toggles the display of the stop-loss level on the chart.

Overlays

Volatility Bands

SFX Algo Volatility Bands

Volatility Bands dynamically adjust to market conditions, expanding during high volatility and contracting during low volatility.

  • Tight Bands: Indicate a consolidating market with low volatility, often signaling a potential buildup before a breakout.

  • Wide Bands: Reflect increased volatility, typically during strong price trends or after a breakout.

The bands can also act as support and resistance, with price often reversing at the upper or lower band. Breakouts occur when price moves beyond the bands, signaling a potential trend in the breakout direction.

Retracement Wave

SFX Algo Retracement Wave

The Retracement Wave is used to identify entry points during pullbacks in trending markets.

Trend Dashboard

SFX Algo 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.

Trend Coloring

SFX Algo Trend Coloring

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.

Strength Rating

Enabling this setting will show the rating of each signal. When disabled, signals will appear as Buy/Sell without a star rating.

Signal Ratings Dashboard

This dashboard will display the current signal rating and how much the rating has changed since it was generated. For example, if the change in rating is -3, the current signal has lost 3-star ratings since it was generated.

Signal Rating Labels

The Signal Rating Labels display changes in a signal’s star rating directly on the chart. These labels help traders track upgrades or downgrades in a signal's strength.

Alerts

SFX Algo Alerts Settings

You can set 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.