Every indicator has a flaw. The "Full Story" of the Fisher/COG indicator includes a controversial history regarding Repainting.
// FMCBR Indicator – Pine Script v5 templatelength = input.int(20, "Channel Length") mult = input.float(1.618, "Channel Multiplier") retracement_level = input.float(0.618, "Retracement Fib Level")
baseline = ta.sma(hl2, length) upper_channel = ta.highest(high, length) * mult lower_channel = ta.lowest(low, length) / mult
buy_signal = close < baseline and close > lower_channel and close > close[1] sell_signal = close > baseline and close < upper_channel and close < close[1]
I’ll assume you mean the FMCBR technical indicator used in trading (a composite momentum/volatility indicator found in some trading communities). If you meant something else, say so.
Traders who use this indicator (under the Fisher/COG banner) use it for specific market conditions:
The Strategy:
Bullish Signal (Long Entry):
Bearish Signal (Short Entry):
The FMCBR indicator won’t replace your entire strategy, but it will stop you from taking bad breakouts. By forcing a candle to prove itself against a Fibonacci level and a moving average, you filter out the random noise that eats away at retail traders’ accounts.
Try this: Next time you see a big green candle, don’t chase it. Run the FMCBR first. If the score is below 0.65, let it go. The market will always give you another setup.
Have you created your own hybrid indicators? Share your FMCBR settings or code tweaks in the comments below. fmcbr indicator
Disclaimer: This content is for educational purposes only. The FMCBR indicator is a conceptual tool. Always backtest before using live funds.
Here is the "full story" behind this type of indicator, breaking down the name and its function.
Even with a robust tool like the FMCBR, traders lose money. Here is why: