Fractal Dimension Indicator MetaTrader 4 – [TFlab] - Download

The Fractal Dimension Indicator is an advanced technical analysis tool designed to measure the level of complexity and irregularity in price movements within financial markets.

This oscillator utilizes a green median line to indicate whether price behavior over a specific period is trending or oscillating randomly.

Fractal Dimension Indicator Table

The general specifications of the Fractal Dimension Indicator are presented in the following table.

Indicator Overview

The Fractal Dimension Oscillator on MetaTrader 4 consists of three distinct lines, defined as follows:

• Reference Line: A dotted horizontal line at the 1.5 level is considered the boundary between trending and ranging market conditions;
• Dynamic Color Line: This line changes color based on the indicator’s value—red in trending conditions (below 1.5), blue in ranging or volatile conditions (above 1.5).

Uptrend Conditions

The price chart below shows the USD/CAD currency pair in a 30-minute time frame. When the indicator line gradually moves from above 1.5 to below it, this signals a potential reduction in volatility and the beginning of a market trend.

At this stage, the line color changes from blue to red, and this condition persists across multiple consecutive candles—indicating the stability of an uptrend.

Downtrend Conditions

The image below displays the global gold market (XAU/USD) in a 4-hour time frame. When the indicator line stabilizes below the 1.5 level and appears in red, the market is in a trending condition.

As the line gradually turns blue and moves above 1.5, it may indicate a weakening of the prevailing trend and an increase in price volatility.

Furthermore, suppose the price chart also shows signs of decreasing upward momentum or a break of a significant support level. In that case, the market is likely to enter a correction phase or range-bound condition.

Fractal Dimension Indicator Settings

The image below displays the settings panel of the Fractal Dimension Indicator:

• Calculation Period: Defines the period for calculation;
• Applied Price: Specifies the price used for calculations;
• Level: Sets the reference threshold (typically 1.5).

Conclusion

The Fractal Dimension Indicator is a powerful, non-signal-generating analytical tool that provides a deep and accurate view of price dynamics in the market.

It is beneficial for Trading strategies focused on identifying trending versus non-trending conditions.