What is the Fractal Chaos Band Indicator?

The writers at the IQ Option blog go into the fractal chaos band technical indicator and explain how it can be used when reading charts and doing technical analysis.

The writers at IQ Option break many different type of technical indicators and how they can be used to try and optimize your technical analysis. In this piece, IQ Options breaks down the fractal chaos band indicator, what it is, and how it can be used when making your trades. So what exactly is a fractal chaos band indicator? Well, to quote the author, “it connects the highest/lowest price points on an interval and this way creates upper and lower bands. The upper band is created by connecting the price highs, while the lower band connects the price lows”. It’s goal is to filter out the “insignificant” price movements on a chart so that a certain pattern can be traced and analyzed. When the band is flat, it means that the asset price is more volatile. The signal to a starting trend is when the bands start moving further apart, resembling stairs. Read more on IQ Option to find out how you can use the fractal chaos band.