FDI-Adaptive Supertrend w/ Floating Levels

The FDI-Adaptive Supertrend w/ Floating Levels indicator provides a volatility-adjusted trend-following mechanism by integrating the Fractal Dimension Index (FDI) with a traditional Supertrend logic. This tool aims to deliver more responsive trend detection by dynamically adjusting its lookback period based on market efficiency, while offering additional price structure context through floating support and resistance levels.

Usage

The Usage section focuses on interpreting the trend signals and the secondary level system:

• Trend Detection: Like a standard Supertrend, the indicator plots a line that stays below the price during uptrends (Green) and above the price during downtrends (Red). Crossovers signal potential reversals.
• Floating Levels: These zones represent dynamic support and resistance based on recent Supertrend values. They can be used as trailing stop-loss targets, take-profit zones, or to identify overextended price action.
• FDI Adaptation: When the "Make it adaptive?" setting is enabled, the indicator becomes more sensitive during trending periods (low FDI values) and slows down during range-bound markets (high FDI values), potentially reducing whipsaws.
• Visual Cues: The script includes "L" (Long) and "S" (Short) labels at trend change points, alongside optional bar coloring for trend identification.

Details

The indicator relies on the Fractal Dimension Index (FDI) to determine the complexity of price action. An FDI value near 1.5 suggests random movement or a trading range, while values closer to 1.0 indicate a strong, persistent trend. By feeding the resulting FDI value into the Average True Range (ATR) calculation of the Supertrend, the multiplier becomes adaptive. The floating levels are calculated as percentages of the highest and lowest Supertrend values over a specific lookback period, providing a "corridor" of price movement.

Settings

Basic Settings

• Source: Determines the price data used for the calculation (default is HL2).
• Fractal Period Ingest: The lookback period used by the Fractal Dimension Index.
• Speed: A baseline value used to calculate the adaptive length.
• Multiplier: The factor applied to the ATR to set the distance of the Supertrend from the price.
• Make it adaptive?: Toggles whether the FDI logic should dynamically influence the indicator length.

Advanced Settings

• Floating Level Lookback Period: The window used to calculate the highest and lowest points for the floating bands.
• Floating Levels Up Level %: The percentage threshold for the upper floating level.
• Floating Levels Down Level %: The percentage threshold for the lower floating level.

UI Options

• Color bars?: Toggles trend-based bar coloring.
• Show Floating Levels?: Toggles visibility of the support/resistance bands.
• Fill Floating Levels?: Toggles the background fill between the floating levels.
• Show signals?: Toggles the display of Long and Short labels on the chart.

FAQ

How do I use the floating levels for exits?

Many traders use the bottom floating level as a trailing stop in a long position or the mid-level as a first-stage take profit when the trend shows signs of exhaustion.

What is the difference between this and a regular Supertrend?

A regular Supertrend uses a static ATR period. This version uses the FDI to shorten the period during strong trends for faster response and lengthen it during choppy markets to filter out noise.

How can I access FDI-Adaptive Supertrend w/ Floating Levels?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.