Indicator AML (Adaptive Market Level) displays one of three market states: Flat, uptrend, and downtrend.
It is based on fractal smoothing and has a discrete filter that removes small price movements: If the price movement amplitude does not exceed the square of the predefined amplitude within the specified range, then this price movement will be ignored and considered a flat one.
It has two parameters:
- Period - calculation period;
- Dimension - price movement amplitude in points.
If ABS(FR - FR(Dimension)) < LAG:
LAG = Dimension * Dimension * Point FR = Alpha * Price + (1.0 - Alpha) * PrevFR Price = (High + Low + 2.0 * Open + 2.0 * Close) / 6.0
If R1+R2 > 0 and R3 > 0:
- R1 - (Maximum price - Minimum price within theе Period from the current price) / Period
- R2 - (Maximum price - Minimum price within the Period from i+Period) / Period
- R3 - (Maximum price - Minimum price within the Period * 2) / Period * 2