Fourier Extrapolator is an indicator that will tell the trader the further direction of price movement. And this will allow you to open the right trade deal and make a profit. The algorithm of this predictive indicator is based on the calculation of Fourier waves. He displays his forecast on the chart as a yellow line.
This analysis tool can help a trader to open profitable trades, provided that the optimal parameters are selected in the settings.
There are very few parameters in the settings, but trading efficiency depends on them.
Parameter T - it defines the size that should be applied to the start window. Let me explain what it is. The point is that the Fourier Extrapolator indicator calculates multiple windows. The right edge is fixed with the "shift" parameter. In this case, the left edge is gradually reduced by one candle, and this happens until it reaches the value specified in the parameter T.
The next parameter is "shift". I told you about it above. I want to add. This variable is nothing more than the size of the forecast shift in relation to the zero candlestick.
Finally, the last parameter is Showprofit. It enables or disables the balance dynamics.
Note that the default value of the T parameter is 1000. However, my testing of the indicator showed that a higher value gives better results. For example, you can try 10000.
The default value of the "shift" parameter is 0. But if you want to test the operation of the indicator on historical data, then you need to change the "shift" value to any positive number.
Benefits of the Fourier Extrapolator indicator
This predictive indicator has two main advantages. Firstly, it can be used on any timeframe and currency pair. And secondly, it is not redrawn.
Despite the fact that there are no restrictions on its use, I recommend refusing to use the indicator before the release of important news. He cannot take these events into account in his forecast. In order not to miss the news factor and be aware of the schedule of important news releases, you can set the corresponding indicator.
Important warning: do not trade according to Fourier Extrapolator forecasts without first testing it in demo trading and optimizing the parameters in the settings.