Description
The PZ Flat Market Index (FMI) is a volatility-sensitive indicator that evaluates how much of recent price movement is actually directional. It calculates the ratio between net price movement (from point A to B) and the total high-low range, turning that into a percentage. This gives a reliable and normalized view of market behavior.
- A value of 0% means the market is completely flat
- A value of 100% means the market is fully trending
Readings are shown through a color-coded dynamic line:
- Blue when price action is healthy and directional
- Red when price is stagnant or coiling
The flat market index (FMI) is visualized via a moving average line, giving you not only real-time signals but also historical insight into how market behavior has changed over time.
This indicator is ideal for:
- Disabling EAs or scalping strategies during sideways conditions
- Focusing on trending symbols when deploying trend-following systems
- Applying mean-reversion logic only when the market confirms it's flat
- Manual filtering of instrument lists before active trading sessions
Input Parameters
- Max History Bars – Amount of bars to review when loading the chart
- Lookback – Number of past bars to calculate current FMI value
- Period – Moving average period for smoothing the index line
- ATR Period – Period for the Average True Range, used to define movement
- ATR Multiplier – Multiplies the ATR to calibrate what counts as a meaningful move
Disclaimer
This indicator is a tool for technical analysis only and is designed to assist in chart interpretation. It does not constitute financial advice, investment recommendation, or any guarantee of results. Trading involves a high risk of loss and can result in the loss of your entire capital. Use this indicator at your own risk and only with money you can afford to lose. For complete details, please read our Terms and Conditions.
