Fourier Extrapolator (Fourier extrapolator) indicator for the stock exchange
Fourier Extrapolator is an interpolation method that uses the Fourier transform to estimate function values at points that were not directly measured.
The method works by expanding a function into a Fourier series and then using that series to estimate the values of the function at points of interest.
This method was used to create the indicator of the same name.
This script tries to predict the further price movement in the next few minutes; it not only determines the current direction of the rate movement, but also independently makes a forecast, thanks to which you can choose the direction of opening an order.
Fourier Extrapolator is another attempt by developers to create a script that guesses a trend; how successful it is can only be verified in practice.
The first thing I would like to note is that this indicator takes into account the direction of the trend depending on the time frame; this is a rather important point, since at different time periods the price can move in completely opposite directions.
We can only rely on the adequacy of the output data and the correctness of forecasting the further movement of the trend.
After installing the indicator in the terminal, no text data appears on the screen, the trend line simply extends over time, this is the forecast we need.
All necessary settings are in the file archive for downloading.
The indicator works based on historical data, so it is advisable to use it in the middle of the working day, when there is already the amount of data necessary for analysis.
The operating algorithm is built taking into account the wave theory, which implies a constant price fluctuation in a certain price channel .
Application in trading Fourier Extrapolator
The use of Fourier Extrapolator does not require any special explanation; if your trend line continues downward, we open sell transactions, and if it goes up, we make a purchase.
As testing has shown, this tool shows more accurate results on short time periods, which allows it to be used exclusively when trading scalping strategies. On longer time frames, the forecast often changes its direction.
Based on the test results, the tool received a score of three , since the accuracy of the predictions was quite low , you can try to use the indicator on the one-minute and five-minute timeframes.