Hello,
Does anyone
knows the code for this (below) indicator?
Regards,
JF
E.
W. Dreiss, a trader based in Australia, came up with the creative idea of using
fractal geometry as a way to measure price movement in a security. The chaotic
nature of stock market movements explains why it is sometimes difficult to
distinguish hourly charts from monthly charts if the time scale is not given.
The patterns are similar regardless of the time resolution. Each level is like
the one before it, but the size is different. To determine what is happening in
the current level of resolution, the fractal chaos oscillator indicator can be
used to examine these patterns. This is an excellent indicator to use in
intra-day trading.
Usage:
The
indicator 'looks back' in time depending on the number of time periods selected
to plot the indicator. The value of the oscillator is a good indicator of the
choppiness or trendiness of the markets. the oscillator essentially returns to 0
in choppy markets and has a +ve or -ve value in trending markets. Another way to
look at the oscillator is as an indicator that puts a value on the amount of
trendiness of the markets.
Example chart
