Fractal Indicator

The use of fractals was originally developed by Bill Williams, and are based on fractal geometry. Fractals are used to identify support and resistance levels, and to identify reversal patterns. A fractal can indicate the bottom or the top and work best on a 30 minute chart.

Fractals can be described as five bars with the highest high in the middle and two lower highs on both sides. A pristine example of fractals looks like the shape of a house roof, but they do not always appear as a pristine example.

The basic idea behind fractals is as follows: The market moves in one direction or the other. The market will move up with interested buyers and then move down when there is a lack of interested buyers, then it may have new interested buyers that moves it back up. The fractal indicator helps to identify this trend.

Do you have a FOREX question? Ask a question here. No registration required and it takes less than a minute.

Tags: Fractal Geometry, Resistance, Reversal, Support, Williams