Fractal Dimension Index

The fractal trend indicator is one of the modern indicators, both from the idea and from the underlying mathematics. If we consider it as a pure trend indicator, then the interpretation is similar to that of conventional trend indicators, such as the ADX, i.e. as long as the fractal index rises, the trend is fine, regardless of whether it is a downtrend or an uptrend.

For this, all the interpretation rules that are given below for the ADX apply analogously to the fractal index. Especially you should stay away from the market in phases where the indicator makes a bottom and goes sideways, because there is no trend in the market or a correction is underway. In addition, it provides much more information, which particularly concerns the trend reversals.

In contrast to the conventional trend indicators, it hits all important reversals very precisely, and this also applies to day trading on 4-minute charts. Therefore, it provides much more information than the normal trend indicators. Occasionally, divergences are also formed in the fractal trend indicator. These give particularly reliable turning signals, as a rule, a divergence in the opposite direction is then formed in the ultra-smooth momentum.