What is FDI?
FDI is an indicator used to see the degree of definition of a trend. The FDI ranges from 1 to 2.
On one hand, when the FDI is close to 2 means that there is maximum randomization so there is not any trend pattern defined.
On the other hand, if the value of the FDI is 1, there is a clear shaped and mature trend.
The key of the FDI is to look for early detection of the trend. That is why we assign a level of 1,5 by default as the optimal timing to give the signal.
You have the possibility to use it the other way round when it crosses from below to above.
This element can also be used as a filter, giving a signal while the FDI is below level 1,5 by default.