Auto Fractal [theUltimator5]

6月3日

This indicator is what I call the Auto Fractal. It is a unique algorithm that looks back in time, finds a segment on the chart that closest matches the recent price action, then projects the price forwards. It effectively finds chart patterns and shows you what the price did the last time the same/similar chart pattern was observed.

Creating an algorithm to match abstract curves to other abstract curves and provide a confidence score was the fundamental problem that needed to be solved in order to create this indicator, which curve matches with surprising accuracy.

The most effective method to "curve match" that I found is the Pearson Coefficient, set by a segment length and a lookback period. After the highest coefficient curve is located, the curve then gets scaled and offset to match the current price.

The past segment is drawn over the current price (orange line), giving a visualization of the two curves and how closely they match each other. The indicator then projects the price forwards in time based on the price action of the chart from the historical segment (dashed fuchsia line).

A bounding box also gets drawn around the historical segment to give you a clear visual of where the price is getting pulled from for proper analysis and ease of use.

The Pearson Coefficient % is shown in a table in the top right-hand corner of the chart and can be toggled off if desired. The values range from -100% (perfectly inverse correlation) to +100% (perfectly correlated) with 0 meaning no correlation whatsoever. The closer to +100% the value is, the better the segment match.

As with most/all of my indicators, user interface and simplicity was at the top of my priority list. I designed this to be easily readable and intuitive to both novice and veteran traders, without cluttering the chart.

Note:
This indicator is extremely heavy in terms of memory usage due to nested for loops, and takes several seconds to initially load the chart overlay. If the lookback period is increased too high (>600) then the indicator may time out and fail to load anything. If nothing loads on the chart, try reducing the lookback length and wait up to 10 seconds for lines to appear.

6月4日

發行說明

I added a color gradient to the correlation table to give a quick view of correlation strength.
When the correlation is 100%, the table is blue.
When the correlation is 70% or below, the table is orange.
The table color changes based on a gradient between 100% and 70%. The more "blue" the table is, the stronger the correlation.

This is the first of several planned additional features.

6月7日

發行說明

Several quality of life updates from popular demand...

1) I added the option to change the colors of both the match line segment (originally orange) and the future projection line segment (originally fuchsia)
2) I added a checkbox to "FREEZE" the projection line, which stops the projection line from updating. The use for this is if you want to see if the price actually follows the projection.

I still plan on implementing a historical back test option to let you choose a specific setup and see if that setup is repeatable. This functionality is still in the works and will be pushed out in a later update.

I want to thank Mr-FD for help on the freeze functionality. That was a huge win.