Fractal Dimension Indicator
MT5Also Available for MT4Fractal Dimension Indicator for MT5 helps forex traders avoid trading in volatile markets and buy and sell in trending markets.
Description
The Fractal Dimension Indicator for MT5 helps Forex traders identify market volatility. Moreover, it indicates the beginning of a trending market. This helps forex traders to refrain from trading in volatile markets and enter the markets only during a trend. As a result, traders can use this technical analysis tool to apply trending or ranking market strategies accordingly.
The indicator is easy to understand and works well for both new and experienced Forex traders.
Moreover, it works well on all chart timeframes; however, traders should consider using higher time frame price charts for best results. This indicator does not provide trading signals but helps traders determine market volatility.
Fractal Dimension Indicator For MT5 Trading Setup
The indicator draws a green dotted line at level 1.5 in a separate indicator window. Generally, any values above 1.5 are considered volatile markets, while values below 1.5 represent a trending market. In addition, the color of the line changes to red in a trending market and blue in a swing market.
Since this indicator does not provide trading signals, traders should use it in conjunction with other indicators. Traders should note that if the current market is in the blue for a reasonable period of time, the market is expected to begin to develop soon.
Therefore, traders should anticipate the market trend and prepare to enter the market as soon as the indicator line changes color from blue to red. On the other hand, traders should consider exiting a trend trade if the indicator line changes color from red to blue.
Conclusion
Fractal Dimension Indicator for MT5 helps new forex traders avoid entering volatile markets. On the other hand, experienced traders can use this indicator to use range or trend strategies and trade profitably.
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