Bill Williams Fractals - Fractals

Fractals Technical Indicator - one of the five major Bill Williams trading system indicators, concluded in the MetaTrader 4 terminal into a separate subsection.

The basis Bill Williams' theories is the fact that most often stock markets are in an inert state, and only in 15-30% cases do they move into directed trend movement. Bill Williams Fractals Indicator are designed to detect and display the bottom or top of a price chart.

How to Work with Fractals by Bill Williams

Technically fractal up is a series of at least five consecutive bars, with two bars of lower highs before and after the highest high.

Fractals (Fractals) down - is the opposite candlestick configuration: in a series of five bars before the lowest minimum and after it there are two bars with higher lows.

On the price chart these values Bill Williams' Fractals indicator are marked with up and down arrows similar to cogs and labeled FractalUp and FractalDown.

Bill Williams Fractal Indicator Trading Signals

Fractals indicator signals The market is in the middle of the year, but it is not the only one. lateral movement. Therefore, traditionally, according to the trading strategy Bill Williams Fractals indicator signals filtered out, using Alligator indicator.

Thus, it is not recommended to open a buy trade if fractal is below the "Alligator Teeth", and open a sell position if fractal turns out to be higher than theirs. After the formation of fractal signal and its exit from the "teeth", the indicator is valid until a stronger signal occurs.