Fractal Dimension Indicator

Fractal Dimension Indicator

Fractal Dimension Indicator For MT4 helps forex traders avoid trading in volatile markets and buy and sell during trending markets

The Fractal dimension indicator for MT4 helps forex traders to determine the volatility of the market. Moreover, it indicates the beginning of a trending market. This helps forex traders to abstain from trading during volatile markets and enter the markets only during a trend. As a result, traders can use this technical analysis tool to apply trending or ranging market strategies accordingly.

The indicator is simple to understand and works well for new and advanced forex traders. Additionally, it works well on all chart time frames; however for best results traders should consider using higher time frame price charts. This indicator does not provide trading signals, but helps traders to identify market volatility.

Fractal Dimension Indicator For MT4 Trading Setup

The indicator plots a green dotted line at 1.5 values in a separate indicator window. Generally, any values higher than 1.5 is consider volatile markets and lower than 1.5 represents a trending market. Additionally, the line color changes to red in trending market and blue during ranging market.

As this indicator does not provide trading signals, traders should use this indicator to work in confluence with other indicators. Traders should note that if the current market is in blue for a reasonable length of time, market is expected to trend soon.
So, traders should anticipate a market trend and prepare to enter the markets once the indicator line changes from blue to red. On the other hand, traders should consider exiting a trend trade in case the indicator line changes from red to blue.

Conclusion
The Fractal dimension indicator for MT4 helps new forex traders to avoid entering volatile markets. On the other hand, advanced traders can use this indicator to help deploy ranging or trending strategies and trade profitably.