NVDA: FREMA Linear Extensions - Horizontal VS Directional

FREMA bands offer a dynamic edge over traditional ATR-based volatility bands by adapting to real buying and selling pressure (bullish and bearish part of candles) rather than just price movement. Unlike ATR bands, which expand symmetrically based on historical volatility, FREMA bands widen asymmetrically — expanding more on the upside during strong buying pressure and on the downside when selling dominates. This makes them highly effective for identifying momentum early, spotting true breakouts, and distinguishing strong trends from choppy markets. By responding directly to market psychology, they provide superior trade entries and exits, minimizing noise in ranging conditions while highlighting areas of genuine demand and supply shifts. For traders seeking a more responsive, trend-sensitive tool, FREMA bands deliver a clearer picture of market dynamics compared to conventional volatility indicators.


RESEARCH

Testing how price behaves within 2 types of linear extensions:

• Horizontal
  While giving an impression of being static, they're actually based on FREMA which is dynamic.
  Use Horizontal Levels when expecting price to respect historical support/resistance, especially in sideways or mean-reverting markets.
  
• Directional
  Gives an immediate clue of being adaptable to the general angle of trend.
  Use Linear Extensions when trading with momentum or trend continuation, as they adapt to market directionality.
  

Will price respect the static balance of past support and resistance, or will momentum dictate its own path along the trajectory of directional expansion? By tracking price interactions with both projections, we’ll uncover which model best maps the market’s intentions, offering valuable insights for future setups.

Stay tuned as we register these behaviors in real-time because once the market chooses its guide, the next move could be crystal clear.