From 48a50b6afa483c4ca063151153936108faeabf4d Mon Sep 17 00:00:00 2001 From: Toh4iem9 Date: Sat, 14 Feb 2026 15:37:44 +0100 Subject: [PATCH] new files added --- Indicators/MyIndicators/Quant/FDI_Pro.md | 47 ++++++++++++++++++++++++ 1 file changed, 47 insertions(+) create mode 100644 Indicators/MyIndicators/Quant/FDI_Pro.md diff --git a/Indicators/MyIndicators/Quant/FDI_Pro.md b/Indicators/MyIndicators/Quant/FDI_Pro.md new file mode 100644 index 0000000..22749e6 --- /dev/null +++ b/Indicators/MyIndicators/Quant/FDI_Pro.md @@ -0,0 +1,47 @@ +# Fractal Dimension Index Pro (Indicator) + +## 1. Summary + +**FDI Pro** is an advanced quantitative indicator derived from Chaos Theory. It measures the "Roughness" or "Complexity" of the price curve. + +While classical indicators assume that markets are linear, FDI assumes markets are fractal. It answers the question: *"Is the price movement organized and linear (Trend), or is it filling up the space chaotically (Chop)?"* + +## 2. Methodology & Logic + +The indicator uses the method developed by **Carlos Sevcik** to approximate the Fractal Dimension. + +### The Concept (Box Counting) + +Imagine the price chart displayed in a square box. + +* If the price moves in a straight line from bottom-left to top-right, it occupies 1 dimension. **FDI = 1.0** (Linear Trend). +* If the price scribbles all over the chart, filling the entire box with noise, it occupies 2 dimensions. **FDI = 2.0** (Maximum Entropy/Noise). +* The "Random Walk" (Brownian Motion) sits exactly in the middle at **FDI = 1.5**. + +### Mathematical Interpretation + +* **FDI < 1.5:** The market is "Persistent". Trends are smooth and sustainable. +* **FDI > 1.5:** The market is "Anti-Persistent" or Noisy. Price returns to the mean frequently, making trend-following dangerous. + +## 3. Visualization + +The indicator uses a **Colored Histogram** to signal market regimes instantly. + +* **Green Bars (Value < 1.5):** **Trend Mode.** The market has low complexity and high linearity. This is the "Green Light" for trend-following strategies (e.g., Breakouts, MA Crosses). +* **Gray Bars (Value > 1.5):** **Chaos Mode.** The market is complex and choppy. Prices are random. Avoid breakouts; use Mean Reversion strategies or stay out. + +## 4. Parameters + +* `InpPeriod`: The window of bars to analyze (Default: `30`). + * *Shorter periods (e.g., 20)* react faster to regime changes but are noisier. + * *Longer periods (e.g., 50)* provide a robust, long-term filter for trend quality. +* `InpPrice`: The price source (Close, High, Low, etc.). Standard `PRICE_CLOSE` is recommended. + +## 5. Strategic Usage + +1. **Trend Filter:** + Combine FDI with a directional indicator (like `Trend Score` or `TSI`). Only take the trade if the FDI Histogram is **Green** (< 1.5). This filters out fake breakouts in choppy markets. +2. **Exhaustion Signal:** + If prices are making new highs, but the FDI starts rising sharply towards 1.5 (Histogram turning Gray), it means the trend is becoming "rough" and unstable. A reversal or consolidation is likely. +3. **Hurst Confirmation:** + FDI and Hurst are inverses. A low FDI (< 1.5) usually corresponds to a high Hurst (> 0.5). Using both provides a dual-confirmation of market memory.