Fractal Energy (FE) or Fractal Linear Energy (FLE) aka Chop Index for ThinkorSwim

[markos]

Good Afternoon,

New to the Thinkscript forum and Thinkscript itself. A pile of information here although not sure I understand most of it.

I have a Fractal Energy indicator that I purchased and was hoping to receive some direction on how to create a scanner from the code. I have taken a few stabs at it but truly have no clue what the hell I am doing. Too many punches in the head perhaps.

Is this inquiry proper etiquette and permissible on this forum?

Thank you.

Hi @JamesF did you read this thread from the beginning? At the top is a full explanation of how it works along with code for a scan. Load the above next to your paid code and compare the difference.
If it is different, you got ripped off, IMO. FE or CI was invented by a commodity trader in the 1960's. On some platforms it is called the Chop Index. No matter, what I have placed above is what you want if you want the original. If the above no longer works, @BenTen or @rad14733 would have to take a look at it.

 

[JamesF]

Hi @JamesF did you read this thread from the beginning? At the top is a full explanation of how it works along with code for a scan. Load the above next to your paid code and compare the difference.
If it is different, you got ripped off, IMO. FE or CI was invented by a commodity trader in the 1960's. On some platforms it is called the Chop Index. No matter, what I have placed above is what you want if you want the original. If the above no longer works, @BenTen or @rad14733 would have to take a look at it.

Thank you Markos.

 

[dmillz]

Ive noticed that when the energy line is going downward there is pretty heavy movement any indicators that are similar to this?

 

[MerryDay]

Ive noticed that when the energy line is going downward there is pretty heavy movement any indicators that are similar to this?

If your question is: What other indicators incorporate fractal energy, here are the top 20 fractal energy posts:
https://usethinkscript.com/search/837313/?q=fractal&t=post&c[title_only]=1&o=replies&g=1

 

[Glefdar]

Has anyone used this with SPY on a higher time aggregation (such as a day or week?), and noticed if there’s a range within which the FE value tends to indicate that price action is likely to remain range-bound as opposed to breaking up or down into a new price channel?

 

[markos]

Has anyone used this with SPY on a higher time aggregation (such as a day or week?), and noticed if there’s a range within which the FE value tends to indicate that price action is likely to remain range-bound as opposed to breaking up or down into a new price channel?

Please read from the beginning. I use it only on Daily and Weekly Charts. Then check out these 2 posts.
https://usethinkscript.com/threads/...djusting-with-fractal-energy-usage-notes.219/
https://usethinkscript.com/threads/can-you-speak-fractal-energy-to-me.1437/

 

[Glefdar]

Please read from the beginning. I use it only on Daily and Weekly Charts. Then check out these 2 posts.
https://usethinkscript.com/threads/...djusting-with-fractal-energy-usage-notes.219/
https://usethinkscript.com/threads/can-you-speak-fractal-energy-to-me.1437/

Thanks, I gather from the links that the FE value thresholds for compression and exhaustion will be the same but the length input may need to be varied in accordance with the time frame that one anticipates being in a trade or riding a potential move. It’s still not that clear to me how the length input on a daily chart would be optimally determined if one’s specific purpose for using FE was to gauge the risk that a new daily range would be broken into from a prior period of consolidation. I guess the best way to determine it would be back-looking over a year-long SPY chart using the day period while trying different length inputs.

What I mean is that if one wishes to trade an edge based on mean-reversion within a range, as opposed to trading an edge based on a trend following strategy, I was wondering how well FE could be used on the daily time frame to avoid taking mean reversion signals which will end up failing due to the channel being broken in the start of a new uptrend or downtrend that has followed after some time of range bound consolidation on the daily chart. So if people are usually using FE to take trend-following signals and stay out of trades when the market is not trending, I was thinking about using it for the opposite purpose.

 

[MagicQuotes]

The point of all this thread is summarized by one concept: Inflection points. All the contributions are welcomed. Every trader is looking for inflection points that they can personally recognize . If an indicator- a derivative of market auction order flow _helps you with identify and consistently take profitable trades then it's good. Sometimes the Fractal Energy is not responsive to smaller fluctuations. One thing I like is a function that is exponentially expanded to show the extreme moves in the auction. Suggest a Fisher Transformation and lay it over the FE studies in this thread. It is an interesting cmbination. I welcome comments. Best to all, MagicQuotes/ These are all digitalized signals which sometimes distorts the real-time analogue nature of how the market buffets back and forth, so all indicators should be taken as only indicators. Price ultimately is the Key element. Watch the Price!
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