Fractals
Fractal indicator was developed by Bill Williams.
Fractals are indicators on candle stick chart that identify reversal points in the market, that is highs and lows and normally mark them by arrows.The fractals indicator constitute of two pattern;that is;
- The bullish fractal pattern
-And the bearish fractal pattern.
The bullish fractal pattern signals the trader that the market will move higher while the bearish fractal pattern signals the trader that the market will move lower.
The bullish fractal pattern are marked by a down arrow while the bearish fractal pattern are marked by an up arrow.
When the market will move high, Fractal indicator will come up in 5 successive bar with the highest high bar in the middle and two lower highs on both sides while when the market will move low fractal indicator will come up with 5 successive bar with the lowest low bar in the middle and two higher low on both sides.
This is indicated as in the figure below;
The candle stick chart above shows a fractal indicator.Some fractals are above the candle sticks chart while others are below the candle stick chart.The one above the candle stick chart which are being indicated by red arrows are bearish fractals whose arrows are pointing upwards while the one below the candle stick chart which are being indicated by red arrows are bullish fractals whose arrows are pointing downwards.
The bearish fractals which are above the candle stick chart and whose arrows are pointing upwards are signaling traders to close any position which was upward and to enter a sell position since the market will start moving downwards while the bullish fractals which are below the candle stick chart and whose arrows are pointing downwards are signaling traders to close any position which was downward and enter a buy position since the market will start moving upwards.
Fractals are indicators on candle stick chart that identify reversal points in the market, that is highs and lows and normally mark them by arrows.The fractals indicator constitute of two pattern;that is;
- The bullish fractal pattern
-And the bearish fractal pattern.
The bullish fractal pattern signals the trader that the market will move higher while the bearish fractal pattern signals the trader that the market will move lower.
The bullish fractal pattern are marked by a down arrow while the bearish fractal pattern are marked by an up arrow.
When the market will move high, Fractal indicator will come up in 5 successive bar with the highest high bar in the middle and two lower highs on both sides while when the market will move low fractal indicator will come up with 5 successive bar with the lowest low bar in the middle and two higher low on both sides.
This is indicated as in the figure below;
The candle stick chart above shows a fractal indicator.Some fractals are above the candle sticks chart while others are below the candle stick chart.The one above the candle stick chart which are being indicated by red arrows are bearish fractals whose arrows are pointing upwards while the one below the candle stick chart which are being indicated by red arrows are bullish fractals whose arrows are pointing downwards.
The bearish fractals which are above the candle stick chart and whose arrows are pointing upwards are signaling traders to close any position which was upward and to enter a sell position since the market will start moving downwards while the bullish fractals which are below the candle stick chart and whose arrows are pointing downwards are signaling traders to close any position which was downward and enter a buy position since the market will start moving upwards.
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