AURIUM (GOLD-Weighted Average with Fractal Dynamics) Aurium is a cutting-edge indicator that blends volume-weighted moving averages (VWMA), fractal geometry, and Fibonacci-inspired calculations to deliver a precise and holistic view of market trends. By dynamically adjusting to price and volume, Aurium uncovers key levels of confluence for trend reversals and continuations, making it a powerful tool for traders.
Key Features: Dynamic Trendline (GOLD): The central trendline is a weighted moving average based on price and volume, tuned using Fibonacci-based fast (34) and slow (144) exponential moving average lengths. This ensures the trendline adapts seamlessly to the flow of market dynamics. Formula: GOLD = VWMA(34) * Volume Factor + VWMA(144) * (1 - Volume Factor)
Fractal Highs and Lows: Detects pivotal market points using a fractal lookback period (default 5, odd-numbered). Fractals identify local highs and lows over a defined window, capturing the structure of market cycles.
Trend Background Highlighting:
Bullish Zone: Price above the GOLD line with a green background. Bearish Zone: Price below the GOLD line with a red background. Buy and Sell Alerts: Generates actionable signals when fractals align with GOLD. Bullish fractals confirm continuation or reversal in an uptrend, while bearish fractals validate a downtrend.
The Math Behind Aurium: Volume-Weighted Adjustments: By integrating volume into the calculation, Aurium dynamically emphasizes price levels with greater participation, giving traders insight into zones of institutional interest. Formula: VWMA = EMA(Close * Volume) / EMA(Volume)
Fractal Calculations: Fractals are identified as local maxima (highs) or minima (lows) based on the surrounding bars, leveraging the natural symmetry in price behavior.
Fibonacci Relationships: The 34 and 144 EMA lengths are Fibonacci numbers, offering a natural alignment with price cycles and market rhythms.
Ideal For:
Traders seeking a precise and intuitive indicator for aligning with trends and detecting reversals. Strategies inspired by Bill Williams, with added volume and fractal-based insights. Short-term scalpers and long-term trend-followers alike. Unlock deeper market insights and trade with precision using Aurium!
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