Fractal indicator is a meter that shows the higher lows and lower highs of the movement of the price where it paused or transposed. Peaks and troughs are endpoints. This indicator highlights the local maximum and minimum values of the graph, where the cost of traffic stops and reverses. Bill Williams invented the fractal indicator.
How to Use Fractals Indicator in Trading
Fractals begin to form around the cluster of five bars next to each other. The first bar and the second bar are raised one by one above (or below), the fourth bar and fifth bar fall below (or rise), and the third (middle) takes the highest position (or the lowest) in the group.
- Buy Signal – It is an arrow that points to the top.
- Sell Signal – It is an arrow that points to the bottom.