FuturoFX indicator: accurate prediction of future price movement
FuturoFX indicator belongs to the category of predictor indicators and is based on one of the postulates technical analysisThe FuturoFX indicator compares the current market situation to historical data. The FuturoFX indicator compares the current market situation with historical data and, based on repeating patterns, calculates the average arithmetic price movement, which is displayed on the price chart of the currency pair as a forecast.
FuturoFX indicator works on all available trading instruments and on all timeframes, however, for its correct work it is recommended to download the quotes history for the selected instrument.
How the FuturoFX indicator works
The FuturoFX indicator considers a block consisting of the number of candlesand compares it with the similar blocks already present in the history of quotes. The blocks of candlesticks that show similarity 75% and more are taken for the analysis (the matching parameter is available to change in the settings).
The arithmetic average of the subsequent price movement is displayed on the chart of the currency pair in the form of an orange channel. The most accurate match is displayed on the chart in the form of yellow candles.
In addition, the indicator FuturoFX displays a window-informer, which displays:
- Opening time of the current bar (candlestick)
- Number of analyzed candlesticks from the available quotes history
- Number of comparisons
- The number of blocks matched by the set parameter in percent.
- Percentage of closest match
- The potential for a probable upward or downward price movement, expressed in pips
- Total probability of the prediction coincidence
FuturoFX indicator settings
- Look Back - number of candles in the analyzed block
- Look Forward - number of candles in the forecast
- Max History - number of candlesticks from the history, with which the comparison will be carried out. 0 - analysis of all available quotes history.
- Correlation Data - The parameter of search of coincidences. It can have the following values: OHLC - taking into account Open, High, Low, Close prices of each candle, M - Median, T - Typical, W - Weighted.
- Cor Threshold - the matching percentage set by the trader, which will be used for calculations.
- Select Best Correlations - the number of maximum matches for the prediction. 0 - take into account all matches with the set percentage.
- Display Options - indicator interface control: T - position of the informer on the chart, A - average forecast, B - optimal match, R - rectangular selection of the analyzed block of candles on the chart.
- Avg Projection Color - the color of the average forecast
- Best Projection Color - the color of the optimal match graph
- Text Size - the size of the text on the graphic
- Text Font - typeface
- Window Screenshot - option to take screenshots: 0 - the function is not used, 1 - screenshot with every new candle, 4 - every 4 candles, 5 - every 5 candles, etc. Screenshots are saved in the experts/files folder.
According to ForTrader.org experts, FuturoFX indicator cannot be used as an independent source of trading signals, but it can be used as a filter in existing strategies. It is also possible to use coinciding indicator forecasts on several timeframes.
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