This indicator do not shows trend direction, but it shows the market is in trend or in volatility!!
The Fractal Dimension Index determines the amount of market volatility.
The easiest way to use this indicator is to understand that a value of 1.5 suggests the market is acting in a completely random fashion..
As the market deviates from 1.5, the opportunity for earning profits is increased in proportion to the amount of deviation.
But be careful, the indicator does not show the direction of trend.
The indicator is RED when the market is in a trend. And it is blue when there is a high volatility.
When the FDI changes its color from red to blue, it means that a trend is finishing, the market becomes erratic and a high volatility is present. Usually, these “blue times” do not go for a long time. They come before a new trend..
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