Definition

The Fractal Chaos Oscillator is a straightforward indicator that operates with three values: -1, 0, and +1. These numbers serve as signals for market activity. Specifically, a value of +1 indicates an upper-range change in the market, -1 denotes a lower-range change, and 0 suggests market consolidation.

Suggested Trading Use

When you see a value of +1 on the Fractal Chaos Oscillator, it’s signaling a change in the upper range of the market. This could be an indication to pay attention to opportunities for entering long positions or securing gains from existing ones.

Conversely, a value of -1 means that the market is experiencing a change in the lower range. This could be a signal to look at potential short positions or be cautious with your long positions.

If the indicator shows a value of 0, the market is consolidating. This typically means that it's a period of indecision, and you might opt to stay out of entering new trades until a more definitive movement occurs.