Introduction to FRAMA.
FRAMA (Adaptive Fractal Moving Level**) is a forward-looking technical indicator that brings together the best of fractal theory and adaptive moving level** to more accurately reflect the strength and trend of the market.
Calculation method of FRAMA.
1.Calculate the fractal dimension: Assess the level of market chaos by measuring the fractal dimension of the series.
2.Adjust the Adaptive Factor: Adjust the Adaptive Factor based on the level of market chaos to smooth out the movement**.
3.Calculating FRAMA: Moving averages using the values calculated by the adaptive coefficients.
Features of FRAMA:
Adaptive: Automatically adjusts the smoothing coefficient according to the degree of market chaos to adapt to various market environments.
Anti-noise capability: Introduce a fractal dimension to improve the anti-noise level of the indicator and reduce the sensitivity to short-term fluctuations.
Trend Capture: Dynamically adjust the smoothing coefficient to better capture the trend of the market.
Application scenarios for FRAMA.
Trend Detection: An upward trend in FRAMA may indicate an uptrend, while a downward trend may indicate a downtrend.
Buy and Sell Signals: *Crossing FRAMA may generate buy and sell signals.
Confusion Judgment: By observing the fractal dimension, determine the current chaos of the market.
Conclusion. FRAMA, as a technical indicator that integrates fractal theory and adaptive moving level**, provides investors with a more intelligent and adaptable decision-making tool to market changes. Its unique design makes it superior in capturing trends, providing signals, and more. In the era of intelligent trading, make good use of FRAMA to help you gain in-depth insight into the strength and trend of the market, and make decisions easily.
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