Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2012.08.24 09:37
CFB tells you how long the market has been in a quality trend. This value can be used to adjust the period length of other indicators, especially stochastic bands. In order to quantify the overall duration of a market's trend, we replaced classical cycle analysis methods (FFT, MEM, MESA) with a form of analysis that works even when no cycles exist. We accomplished this by examining a time series for specific fractal patterns of any size. We then gather all the patterns found and combine them into one overall index, CFB (Composite Fractal Behavior) Index.
Composite Fractal Behavior and its aplications - good thread with the following indicators:
It is very advanced multi timeframe fractal indicator with alerts. There are some good features such as how to show the arrows when showJustOneArrow parameter is set to true :showArrowType parameter :0 -> draw arrow just on the first bar of the target time frame1 -> draw arrow just on the last bar of the target time frame2 -> draw arrow when the high is equal to high fractal or low is equal for low fractalAdditional option is to show the arrow just on the first bar of the target time frame fractal, or to repeat it on every bar belonging to that time frame bar.
Choppiness Index - JMA Smoothed - indicator for MetaTrader 5
Choppiness is a modern indicator based on ideas of chaos theory and fractal geometry. Benoit Mandelbrot was the one person most responsible for the great interest in the subject of fractal geometry. He showed how fractals can occur in many different places in both mathematics and elsewhere in nature. They could be found underlying cloud formations, waves, leaves, fingerprints, and sunflowers, and his ideas provided some exciting glue between mathematics and nature. Using computer graphics and with the help of IBM, Mandelbrot was able to show how to express fractal geometry using computer graphics.
While most of us think there are only whole number dimensions, like 1D, 2D, and 3D, in fractal geometry there exist fractional dimensions in between the whole number dimensions. So there are a number of fractal dimensions between a 1D line and a 2D plane. Fractals are basically a measurement of the dimensionality of a system; they are able to express different images based on the fractional nature of dimension.
Choppiness Index - indicator for MetaTrader 5
Chaos Trader Lite - expert for MetaTrader 4
Chaos Trader Lite attempts to use aspects of chaos theory to place trades in the marketplace. This trader, in particular, draws upon theories made by Bill Williams. Every version of MetaTrader contains the Bill Williams indicators. I wondered why was he deemed so important as to have his own set of indicators added to MetaTrader with name attribution. Conducting research I found that Bill Williams wrote a book using chaos theory to trade the markets. The Bill Williams indicators are useful when trading using chaos theory.