Forex Variation Index Indicator
Forex Variation Index Indicator:
Nowadays, the most popular representatives of the fractal time functions are the financial time series. The fractal structure of these series is well-known and
aсcording to Mandelbrot there is a “rewording of the famous market saying that the movement of stocks and currencies is independent of the time scale and the
price. An observer can’t tell if the information refers to the weekly, daily or hourly changes just by looking at the appearance of the chart» [1].
Usually, to determine the fractal dimension the Hurst’s exponent is calculated [2]. However, for the reliable calculation of this exponent a huge amount of data
is necesary (~ 10^3) and that is too much comparing to the duration of the trends of trading.
The authors [1] interpose the fractal characteristics – the variation index (m) that is closely related to the common fractal dimension. In distinct from the
Hurst’s exponent, the amount of information that is necessary for index determination is less by a factor of 2. It leads to use it as a local characteristics for
determination of the dynamics of the price series. If m < 0.5, it can be interpretated as a trend and m > 0.5 – as a flat.
The suggested indicator calculates the variation index on a previous interval which is 2^n long. The “n” parameter is specified by the user.
The common rules of the indicator application are the following:
- If the value of the indicator is lower than 0.5 it means the trend state of the market.
- The extremely low value is often precedes the end (correction) of the current trend.
- If the value of the indicator is higher than 0.5 it means the flat state of the market.
- The extremely high value is often precedes the beginning of the considerable trends.
- If the value of the indicator is close to 0.5 it means an undefined state of the market.
What does Forex Indicator mean?
A forex indicator is a statistical tool that currency traders use to make judgements about the direction of a currency pair’s price action. Forex indicators come in many types, including leading indicators, lagging indicators, confirming indicators and so on. Popular forex indicators include moving averages, relative strength index (RSI) and average true range (ATR). A forex trader must choose the indicators that fit his or her trading strategy.
How to install Forex Variation Index Indicator?
- Download Forex Variation Index Indicator.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex indicator
- Load indicator on your chart
How to uninstall Forex Variation Index Indicator?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
