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2009.02.18 07:11
Indicators

FRASMA: Fractally Modified Simple Moving Average - indicator for MetaTrader 4

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The SMA is accelerated during a trend and slowed down during a sideways market, so as to avoid false signals. It's using the fractal dimension as computed by iliko [arcsin5@netscape.net] in his indicator called fractal_dimension.mq4, and makes use of it to smooth the SMA. I feel it is best used in combination with it, so I attached the file (though both indicators are independent and can be used alone).


The theoretical details behind the logic of this indicator can be found on my blog: http://fractalfinance.blogspot.com/

This indicator can then be used for bands trading, and I intend to develop a fractalised bollinger bands based on it in the next few weeks.

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