Can You Speak Fractal Energy to Me?

[john3]

Calling all coding wizards to please explain Fractal Energy (FE) in plain English? There has been a lot of FE scaled indicators, FE RSI, etc, but what is it and why should it work? I'm pretty sure I am not the only one who would be interested to learn about the FE stuff. This seems to be the "core" FE code that is used in a lot of indicators.

def fractalEnergy = Log(Sum(Max(high, close[1]) - Min(low, close[1]), length) /
(Highest(high, length) - Lowest(low, length))) /
Log(length);

I appreciate your help in advance!

 

[tomsk]

I've written a couple of posts on this. Read here for more info

https://usethinkscript.com/threads/es-trading-strategy-on-thinkorswim.987/page-18#post-11440
https://usethinkscript.com/threads/es-trading-strategy-on-thinkorswim.987/page-18#post-11460

 

[john3]

@tomsk Thank you. I've seen Mobius' description/interpretation, but I would like to understand the code itself. It seems to be similar to Stochastic. Yes?

 

[tomsk]

All the following code does is to determine the location of the value within a range, and assign it to the variable FE and plot it

plot FE = Log(Sum(Max(high, close[1]) - Min(low, close[1]), length) /
           (Highest(high, length) - Lowest(low, length))) /
            Log(length);

 

[john3]

@tomsk. Thank you. Makes sense. Do you have the code for the FE scaled Wilders RSI? I am not a big fan of the Laguerre RSI that Mobius wrote.

 

[markos]

@john3 did you read what I wrote in the Tutorials? The RSI with LaGuerre Time Transform is a often included with Fractal Energy but it doesn't have to be. Fractal Energy, as an indicator, can be run by itself.
The signals it gives off can be explained this way; when FE is above .60, think charged up. When FE is below .40, think out of gas.
FE does not give you any information about direction. When it is high, it shows that is has the potential to move up or down.
When Fractal energy is low, the movement is tired and likely to slow. Don't over think it.
Hope that helps. Also fyi @MBF

 

[john3]

@markos What tutorials? Where are they?

 

[tomsk]

I believe this is what @markos is referring to

https://usethinkscript.com/threads/...djusting-with-fractal-energy-usage-notes.219/