AML
(Advance Market Level) indicaotr is a VertexFX client side VTL indicator that
is designed to determine the state of market. It shows the flat market and when
there is a strong movement for trend. When there is a flat market and the
market indicator line is horizontal it is advisable not to open new position.
The signal
for Sell is when the indicator moves down, a signal to Buy is when the
indicator moves up. If the indicator line shows flat maket then you need to
close the positions that was opened earlier.
AML
indicator uses fractal smoothing FRAMA discrete filter. With this filter
whispaws are eliminated with minor fluctuations in prices. The filter value can
be changed for more and deep filtration, through the parameter Default Lag (its
default value is 7).
Fractal
Adaptive Moving Average Technical Indicator (FRAMA) indicator is constructed
based on the algorithm of the Exponential Moving Average (EMA), in which the
smoothing factor is calculated based on the current fractal dimension of the
price series. The advantage of FRAMA is the possibility to follow strong trend
movements and to sufficiently slow down at the moments of price consolidation.
Method of
calculation of the indicator:
1. We make the calculation of the highest and lowest values over the the last two fractals (length bars = Fractal = 6) and their Range: R1, R2, R3-double range.
2. If R1+R2 more than 0 and R3 more than 0 then make the calculation dimention = Log(R1+R2)-Log(R3)
3. Then we calculate alpha = Exp(-Lag * (dimention - 1)) and WEIGHTED current price.
4. After that, we expect the value of the indicator as follows: IND=alpha * weighted_price + (1-alpha) * INDprev, where INDprev-the previous value of the indicator.
C:\ProgramData\VertexFX
Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right
click on the tree and select refresh or restart your client station and you
will find under VTL local scripts in
your client terminal.
You can
check this video that talks about AML indicator: