Standard Error Bands (SEB) – FX Replay Guide

The Standard Error Bands (SEB) indicator in FX Replay combines trend detection with volatility mapping, helping you track the market’s momentum with precision. It draws a linear regression-based middle line and wraps it with upper and lower bands based on standard error calculations — ideal for spotting breakouts, continuation setups, or reversal conditions.

How to Set It Up in FX Replay:

1. Open the Indicators panel.
2. Search for “Standard Error Bands” or SEB.
3. Apply it to your chart. It will display:
   • A middle line (3-period SMA of a 21-period regression)
   • Upper and lower bands based on two standard errors from the regression

How to Use It:

Trend Strength

• Narrow bands = strong trend, low volatility → ideal for trend continuation trades
• Widening bands = volatility rising → potential trend weakening or shift

Trend Direction

• The slope of the middle line reveals the dominant market direction
• Use this to filter your directional bias during backtesting

Volatility Awareness

• Bands expanding = caution zone → potential breakout or reversal
• Bands tightening = buildup phase → watch for breakout setups

Trade Signals

• Trend-following entry: Enter in the direction of the slope after a consolidation phase (tight bands)
• Exit signal: If price pierces the opposite band or bands expand aggressively, consider taking profits or managing risk

Pro Tip:

In FX Replay, the SEB is most effective when combined with:

• Session timing
• Liquidity zones
• Displacement logic

Use it to define market context:

• Are you in a steady trend?
• About to break out?
• Near exhaustion?

You can also test band behavior during the London or NY session to spot high-probability entries based on volatility shifts.