The Lux Algo Premium Indicator allows the user to display various technical indicators directly to their chart, these can be used in confluence with the confirmation/contrarian signals are as standalone. Each of these indicators is covered below.
Other settings do not affect these indicators.
When enabled, a simple "cloud" like indicator will be displayed on your chart. The EQ Cloud is similar in effect to an Ichimoku Cloud, and can determine the current trend as well as behave like a trailing support and resistance.
The cloud is filled with a gradient color showing the current trend relative to the cloud.
If you want to set alerts based on the EQ Cloud, note that during an uptrend the upper plot of the EQ Cloud is named "Cloud-2", while the lower plot is named "Cloud-1".
When enabled, one upper and one lower zone will be displayed on your chart, each zone is designed to help the user find tops and bottoms whether the market is ranging or trending (however the indicator will still be more effective during ranging markets).
These zones can be great areas to take profit or find early entries to use alongside the confirmation or contrarian signals.
During periods of increased volatility, the price may move outside the zones, you can wait for the price to go back within each zone to take a decision.
The trend tracer is a trend-following indicator that aims to estimate the underlying trend in the price. When the indicator indicates an uptrend its color will be green, while red in the case of a downtrend.
The trend tracer can be used as a trailing support/resistance tool, you can also use it in confluence with the confirmation signals, either by waiting for the price to reach the trend tracer in order to enter a trade corresponding to the current confirmation signal or by filtering shorter-term signals by only trading those in accordance by the trend estimated by the trend tracer.
The Trend Catcher is a similar indicator to the previous Trend Tracer, however, it aims to detect very early trends, and is thus more reactive.
Like with the Trend Tracer, the color of the indicator determines the detected trend.
It can be interesting to use both the Trend Tracer and Trend Catcher in a crossover system, with the Trend Catcher acting as the leading moving average and the Trend Tracer acting as the lagging moving average.
It is possible to forecast each reversal zones extremities as well as the two lines in the EQ cloud, the forecast is enabled by default, as such when you enable them you will see a forecast appearing on the chart. The forecasts appear as dashed lines.