Fractal Dimension indicator is an
innovative VertexFx client-side indicator script that provides entry and exit
signals based on the strength of the trend and its direction.
The concept behind the indicator is
that during consolidation phase, price moves with a band. As the market starts
to trend (either bullish or bearish), the price starts moving towards the
Lowest Low (bearish), or away from the Lowest Low (bullish). As a result, the
indicator catches this movement and reflects it accordingly on the chart.
To calculate the Fractal Dimension,
we use the price field defined by the PRICE_FIELD parameter. In the first step,
we calculate the Highest High and the Lowest Low over the recent PERIOD bars.
In the second step, we calculated the Smoothed Moving Average of the difference
between the price and the Lowest Low over the recent PERIOD bars.
In the third step, we normalize this Smoothed Moving Average over the recent PERIOD bars, to derive the Fractal Dimension indicator.
In the third step, we normalize this Smoothed Moving Average over the recent PERIOD bars, to derive the Fractal Dimension indicator.
If the indicator value is above the
THRESHOLD value, then the indicator is colored BLUE. On the contrary, if the
indicator value is below the THRESHOLD value, then the indicator is colored
RED.
Buy: Place Buy position when
the indicator has turned BLUE at close of candle. Do not open Buy trade if
candle has a gap-up opening. Place stop-loss below the nearest Swing Low or
Support level.
Sell: Place Sell position when
the indicator has turned RED at close of candle. Do not open Sell trade if
candle has gap-down opening. Place stop-loss above the nearest Swing High or
Resistance level.
Parameters:
1) PERIOD - The period over which the indicator is calculated.
2) PRICE_FIELD - The price field used to calculate the indicator. 0 = Close, 1 = Open, 2 = High, 3 = Low, 4 = Median, 5 = Typical, 6 = Weighted.
3) THRESHOLD - The threshold value of the indicator above which the indicator is considered BULLISH, and below which the indicator is considered BEARISH.
2) PRICE_FIELD - The price field used to calculate the indicator. 0 = Close, 1 = Open, 2 = High, 3 = Low, 4 = Median, 5 = Typical, 6 = Weighted.
3) THRESHOLD - The threshold value of the indicator above which the indicator is considered BULLISH, and below which the indicator is considered BEARISH.
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 Fractal Dimension indicator: