Fractal Dimension Index - FDI

The FDI is a method which assigns a number to the line on your chart. The number will be between 1.0 and 2.0. The closer prices move in a one-dimensional straight line, the closer the FDI moves to 1.0. The more closely prices resemble a two-dimensional plane, the closer the FDI moves to 2.0.

A trend causes the FDI to move down, and we can expect the trend to end when the FDI reaches the 1.35 level. The FDI does not tell us if the trend will reverse sharply, or if prices will begin to range. It only tells us that prices should go back to acting like a fractal soon.

As the market ranges, the FDI will move up. When the FDI reaches the 1.50 level, we can expect a new trend to begin. The FDI does not tell us which way prices will break, only that a break should be coming soon.