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Magic Circles V3

Magic Circles indicator uses an ATR based trend indicator in conjunction with a Parabolic SAR indicator for creating signals. Blue is neutral. Green is buy and red is sell. A hollow green circle followed by a regular green indicates a strong buy while a hollow red circle followed by a regular red one indicates a strong sell signal. This version gives you the option to choose your own magic number. Default is 1.618 also known as the golden ratio. The indicator works best at trending markets.

Version 3 comes with ADX filtering to avoid misleading signals and set on by default. Also you can now see the support / resistance levels. Another option added is showing the current trend direction.

ADX is Average Directional Index and founded by Welles Wilder. Wilder published his work in his book titled New Concepts in Technical Trading Systems (1978).