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Equilibrium Fractal Wave Analytics MT4

Introduction to Equilibrium Fractal Wave Analytics

EFW Analytics was born to accomplish the statement "We trade because there are regularities in the financial market". EFW Analytics is a set of tools designed to maximize your trading performance by capturing the repeating fractal geometry (fifth regularity) in the financial market. EFW Analytics is one of the very few tools supporting your trading logic without the need of backtesting. This tool consists of three parts including:

  • Equilibrium Fractal Wave Index - exploratory tool to support your trading logic
  • Shape Ratio Trading System - trading system 1
  • Equilibrium Fractal Wave Channel - trading system 2

Equilibrium Fractal Wave Index

Equilibrium Fractal Wave index is an exploratory analysis tool for your trading. How to use the EFW index is similar to Hurst Exponent by Harold Edwin Hurst (1880-1978) or Fractal Dimension coined by Mandelbrot in 1975. Literarily, EFW index can help you to confirm the presence of equilibrium fractal waves in the financial market. However, Equilibrium fractal wave index is more practical and intuitive comparing to Hurst Exponent and Fractal Dimension for your trading. The value of equilibrium fractal wave index can range from 0.0 to over 1.0. The higher the equilibrium fractal wave index, you can confirm the stronger presence of a particular shape of equilibrium fractal wave. If the index value is below 0.2, then you may disregard the shape ratio from your trading.

Shape Ratio Trading System

The first method to trade equilibrium fractal wave is using the shape ratio of equilibrium fractal wave. It works similar to the typical Fibonacci retracement or expansion. However, there are few things different. In shape ratio trading, we do not limit our opportunity to Fibonacci ratios only. This means that you can trade Fibonacci ratio and non Fibonacci ratios with the shape ratio trading. In addition, in the shape ratio trading, we do not assume that every ratio including Fibonacci ratio will perform the same for each financial instrument. Due to these two characteristics, the choice of ratios should be made with EFW index together.

Equilibrium fractal wave channel

How to use EFW channel is extremely simple. You can simply use the proportional trigger method for your trading as it was introduced in the book "Financial Trading with Five Regularities of Nature: Scientific Guide to Price Action and Pattern Trading" (2017, Young Ho Seo).

How to Trade

You can trade in following modes:

Controllable Inputs

This tool can choose up to three shape ratios for your trading. The following are some important inputs.

  • Set false to switch off EFW Channel
  • Timeframe to detect patterns
  • Max number of patterns to display
  • Pattern Index: starting pattern index
  • Trigger Margin for channel: adjust the width of trigger margin for channel
  • Trigger Margin for Shape ratio: adjust the width of trigger margin for shape ratio trading
  • Enable sound alert
  • Send email if pattern is found: set email notification
  • Send notification if pattern is found: set push notification
  • Use white background for chart: set to false to use default black background chart
  • Amount of bars to scan for pattern search
  • Pattern Update Frequency: frequency to update pattern
  • EFW Index Period: calculation period of EFW index
  • Shape ratio 1, 2, 3: choose between 0.1 and 1.0
  • Search EFW with Shape Ratio 1, 2, 3: true or false to switch on and off

Following inputs control graphics of this tools.

  • Line Width Channel
  • Line Width Shape Ratio
  • EFW Channel Colour 1
  • EFW Channel Colour 2
  • EFW Channel Locked Colour 1
  • EFW Channel Locked Colour 2
  • Set background for pattern
  • Text colour
  • Text size for name and ratio
  • Pattern name offset from pattern

Following inputs control buttons in your chart.

  • Button Coordinate X
  • Button Coordinate Y
  • Button Width
  • Button Height
  • Text size for button
  • Button Background Colour
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Version 5.2 - 2018.03.01
In version 5.2, EFW Analytics can detect superimposed levels automatically.
Version 3.1 - 2018.02.22
In version 3.1, user can select multiple of shape ratio for their trading.