Discussing the article: "MQL5 Wizard Techniques you should know (Part 65): Using Patterns of FrAMA and the Force Index"
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Check out the new article: MQL5 Wizard Techniques you should know (Part 65): Using Patterns of FrAMA and the Force Index.
The Fractal Adaptive Moving Average (FrAMA) and the Force Index Oscillator are another pair of indicators that could be used in conjunction within an MQL5 Expert Advisor. These two indicators complement each other a little bit because FrAMA is a trend following indicator while the Force Index is a volume based oscillator. As always, we use the MQL5 wizard to rapidly explore any potential these two may have.
FrAMA adjusts its smoothing period based on fractal geometry, which makes it highly responsive to changes in price while filtering noise. The Force Index on the other hand measures the strength of a price move by multiplying the price change by volume, which serves as a proxy for buying/selling pressure. A bullish/bearish divergence will occur, FrAMA shows a downtrend but Force index forms higher lows indicating weakness in current long trend. The bearish divergence, taking on the opposite of this. Pattern is inherently meant to capture swing or inflexion points in the market. Test results after training/ optimization are presented below, and this pattern does not forward walk over the designated period of 1-year, 2024;
Author: Stephen Njuki