If you’re looking to sharpen your trading strategy, let’s dive into the FRASMA indicator. This innovative tool modifies the Simple Moving Average (SMA) to help you navigate market trends more effectively. The beauty of FRASMA lies in its ability to speed up during trends and slow down in sideways markets, minimizing those pesky false signals.
So, how does it work? The FRASMA utilizes the fractal dimension, a concept computed by iliko using his fractal_dimension.mq4 indicator. This relationship allows FRASMA to smooth out the SMA further, providing a clearer picture of market movements. While both indicators are independent and can stand alone, I’ve found that using them together amplifies their effectiveness.
For those interested in bands trading, this indicator is a game changer. I’m currently working on developing a fractalized version of Bollinger Bands, so stay tuned for that in the coming weeks!
For a deeper dive into the theoretical underpinnings of this indicator, check out my blog: Fractal Finance.