The MFC is a multi-currency signal indicator, which shows the probable direction of the price movement.
This is a standalone product that implements the trading strategy algorithm.
Due to the unique prediction method, the MFC indicator can be used both for long-term and for short-term trading.
No one surely can tell what the price will be the next hour or day. But everyone knows, that the price moves in waves and within a certain range. Even a strong and stable trend has rollback and retracement waves. If the wave-like movement of the price is a given, then why not try to use it for predicting the further movement of the price.
Indicator Operation Principle
The MFC indicator primarily determines the tops and bottoms, the so-called waves. After determining the price, it finds the price range for a certain period. And the final step, based on the algorithm for identifying the speed and direction of the price changes, its further movement is predicted.
- Momentum Period - period for calculating the price changes during the specified time interval (recommended values for H4 are 16-21)
- Fractal Period - the number of bats for plotting the fractal (odd values are recommended for H4: 3-5-7-9)
- History Bars - the number of bars in history for displaying the indicator (maximum is 5000, minimum is 100)
- Display Fractals - display fractals on the price chart (True - show, False - hide)
- Minimum bars channel - the minimum number of incalculable bars (this value affects plotting of the price channel for H4, recommended: 2-4)
- Color upper channel - color of the upper channel
- Color lower channel - color of the lower channel
- Coefficient channel - coefficient of the price coefficient (the standard value is 1.0, step is 0.1, for H4 1.0-1.5)
- Signals on the bars - display signals on the price chart (True - show, False - hide)
- Alert - notification when a signal for opening a trade appears (True - show, False - hide)
The MomentumFractalChannels indicator can be used both independently and as an auxiliary tool. This product is considered a leading indicator, and it generated very good signals for entering the market. Feel free to contact me for any questions. The work on an Expert Advisor on the basis of the MFC indicator is currently under way. Also, this product will be improved. The next version will feature price support and resistance levels.