The “price direction information” indicator or better known as Fourier Extrapolator is nothing more than a scalper indicator based on the basis of Fourier transforms, which give quite good results in trading on the Forex market.
The indicator is leading, which attracts special attention from binary options traders. It plots the expected price movement on the chart, analyzing repeating wave movements and producing a forecast of the subsequent direction of the price chart.
Some binary options signal services try to sell it to their clients, passing it off as the “miracle grail for options trading ”. However, this is not entirely true and like any other indicator, it cannot give you 100% profitable trades and needs to combine its data with data from other technical analysis indicators. It is stated that this indicator itself can provide up to 74% accurate forecasts.
Instructions for installing indicators in MetaTrader 4:
How the Fourier Extrapolator indicator works
Let's take a closer look at the operating principle of the Fourier Extrapolator indicator (price direction information):
This indicator is designed for the MT4 platform and is suitable for all currency pairs and time frames.
The indicator settings are minimal and often the default values can be immediately used for work.
However, you can try to increase the accuracy of the forecast by setting the T parameter to a higher value.
The “T” parameter is responsible for the amount of processed data on the graph. With a significant increase in the parameter, it may take a lot of time to analyze the data. Also, if you plan to increase this value tenfold, then you will need to load the history of the asset you have chosen.
The “shift” parameter is responsible for shifting the wave construction point by a specified number of candles.
The “showprofit” parameter is needed exclusively for trading on the Forex market; its parameter for options trading is not important.
The “alert” parameter , when set to true , will display the segments that are involved in constructing the forecast.
After adding the indicator to the chart, you will need to enable the chart shift for a more convenient display of the indicator.
The Fourier Extrapolator indicator will show the expected further price movement based on the analysis of previous waves. It is worth noting that this indicator is not recommended to be used before important economic news , since fundamental factors can make significant changes in price movements.
Download the Fourier Extrapolator indicator
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With this indicator use:
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