Volume to Confirm Fractal Trend
Functionality and Key Features
- Volume Momentum Using MACD: This indicator calculates the MACD based on smoothed volume changes. By using the difference between two moving averages of volume (short-term subtracted from long-term), it highlights significant shifts in volume momentum, which are essential for confirming trend strength and sustainability.
- Fractal Analysis: Fractals are used to identify natural repetition patterns in price movements around significant highs and lows. This indicator employs multiple fractal lengths to capture a comprehensive picture of market structure and pivot points, enhancing the detection of potential trend reversals or continuations.
- Trend Confirmation: By combining the insights from volume momentum and fractal analysis, this tool filters out false signals and provides a more reliable confirmation of the underlying market trend.
How It Works
- The MACD of volume highlights shifts in market momentum, with a focus on how recent volume compares to historical norms.
- Fractals delineate critical points in the price structure, offering visual cues about potential turning points based on historical price action.
- The indicator synthesizes these elements to paint a clear picture of potential trend developments, signaling green when both volume momentum and fractal proximity suggest a bullish trend, and red when they indicate bearish conditions.
Disclaimer
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