Fractals
Fractals
Only short periods of time (15?30 percent) account for trend changes. Most lucrative periods are usually the case when market prices change according to a certain trend.Invented by Bill Williams, Fractal indicator allows to detect the bottom or the top of the market.
There are upwards and downwards fractals. The first one consists of a series of at least five bars, with the highest maximum in the middle, and two lower maximums on both sides. The second one is identical to the first except for it has downward configuration. The fractals have High and Low values and are indicated with the up and down arrows.
The fractal needs to be used in combination with Alligator. You should not proceed with a buy transaction, if the fractal is lower than the Alligator's Teeth, and you should not close a sell transaction, if the fractal is higher than the Alligator's Teeth. After the fractal signal has been created and is in force, which is determined by its position beyond the Alligator's Jaw, it remains a signal until it gets attacked, or until a more recent fractal signal emerges.
Similar information about indicators you can find in information system of trade platform MetaTrader 4 (Help-> Help Topics [F1] -> Ananlitics -> Technical Indicators).
