1. Flux Charts
    2. SFX Algo Toolkit

    SFX Algo Toolkit: Gauss Ribbon

    SFX Algo Toolkit: Gauss Ribbon Overlay Documentation Thumbnail

    The Gauss Ribbon is an exclusive overlay that can be toggled on in the overlays sections of the indicator settings. The ribbon helps you identify trend direction, entry zones, and areas of potential reversal. It consists of two smoothed dynamic bands that follow price movement and adapt to market conditions.

    How It Works

    The Gauss Ribbon follows the direction of the SFX signals. When a bullish signal triggers, the ribbon turns blue and begins trailing the move. When a bearish signal appears, the ribbon turns red and aligns with the new downtrend. The space between the bands marks the reaction zone where price often pulls back before continuing.

    How the Gauss Ribbon in the SFX Algo Toolkit works

    Usage

    The Gauss Ribbon overlay can be used to identify the trend direction, find entries, and manage existing positions.

    Spotting Trend Direction

    The color and slope of the ribbon show you which side is in control.

    • Blue ribbon: Bullish signal in play

    • Red ribbon: Bearish signal in play

    When the ribbon is wide and angled sharply, the trend has strength. When the ribbon flattens, price may be consolidating or the trend is preparing to reverse.

    Example of when the Gauss Ribbon overlay is flat versus when the Gauss Ribbon overlay is steep

    Timing Entries & Managing Existing Trades

    The Gauss Ribbon can be used as a pullback zone for entry and exit opportunities. If price pulls back into the ribbon and shows signs, it can be a clean entry, re-entry, and take-profit area.

    Timing entrie, re-entries, and profit-taking with the Gauss Ribbon overlay