In this article, we will talk about indicator fractal on Forex, binary options, etc., its settings and description of use.
For reference: fractals are common in the world around us, and we don’t even think that they are in front of us. Fractals are objects that can be divided into smaller parts and these small parts have the same shape among themselves and even the whole object. Examples are snowflakes, corals, seashells, and more.
We already have an article on what fractals are in Forex, be sure to read it if you want to understand the topic in detail. There are also examples of trading strategies based on fractals. In the same article, we will focus on the analysis of the fractal indicator, and also consider the description, settings and download modifications with alerts and other settings.
It is not difficult to figure out what the fractal indicator shows, since there are only two types of fractals – up and down.
They are formed by five candles or bars, but so that we do not manually count the candles and come up with indicators that make this routine easier for us and do everything automatically. The very principle of formation is extremely simple:
- If the high of the third candlestick (the candlestick with the upper tail) out of five forms a local maximum, that is, higher than the rest, then we get an up fractal.
- If the low of the third candlestick (the candlestick with the lower tail) forms a local minimum, then we get a down fractal.
If you do not understand how the Japanese candle works, what are open, high, low and close, then read a great article about it.
The indicator that is installed by default in the Metatrader 4 trading terminal, the lessons on which you can see here, denotes a fractal using up and down arrows. If we take the modified versions of the fractals indicator, then some auxiliary chips have been added there: different colors of arrows, alerts and other conveniences. You can download fractal indicators at the end of this post, we will also consider their settings.
The fractal indicator itself is located in your MT4 trading terminal at: Top Menu-> Insert-Indicators-> Bill Williams-> Fractals
After adding it to the Forex chart, we get arrows, which are called fractals.
If you need a full-fledged trading strategy, I recommend that you familiarize yourself with the Alligator and Fractals strategy suitable for beginners, since in this article we are only considering the indicator itself. But all the same, first you need to read this article to the end, since the information is very useful, and after reading the proposed additional articles, you will get the most complete understanding of fractals and learn how to apply them.
Fractal indicator description
And so, the indicator automatically divides the chart into groups of five candles. This is called fractals in forex, binary options and exchanges. That is, a single whole (chart) divided into groups of candles that are similar to each other (albeit remotely similar). From these groups, in turn, you can make up a single whole – a schedule. In general, although with a certain “pull by the ears”, it resembles natural fractals.
Using a simple program code, the indicator simply automates the process of dividing the chart into these groups and it does not need to be done manually. This concludes with the description and move on to the simple settings.
Fractal settings indicator
Let’s consider for now the standard indicator included in the Metatrader. There are only two settings here – the color of the arrows and their size.
For now, I have set a larger size for the example and made the color red. This, in general, is where the settings of the basic, standard indicator end. But we, fortunately, have modified versions with richer functionality! You can download the archive with them at the end of the article, and now there will be a description and settings.
If you don’t know how to install the indicator, read here.
The first indicator is called Fractals. He has the ability to put different colors on fractals up and down and replace the arrows themselves with rhombuses. Well, the ability to customize their size is present.
This indicator draws a price channel based on the tops of fractals and at the end of the chart displays rays that go into the void. It’s like a forecast of the likely further price movement, something like Forex analytics. Try to trade. get interesting results. In the settings, you can specify the number of fractals (20 by default) and customize the colors of the upper and lower borders of the channel.
Instead of the fractals themselves, this turkey shows badges with the price at which they were formed. By the way, do not forget that indicators can be combined and installed several at a time. This is in case the functions that you need are not in one, but in several turkeys and you do not know which one to choose.
This is an indicator of fractals with an alert, it gives a sound signal (alert) when a new fractal appears in one direction or another. To do this, set the NewFAlert setting to true. Well, there are standard settings for colors and sizes of fractal icons, here they are circles.
Download fractal indicators
Now you can download the indicators of fractals, which we talked about above. I am sure they will be useful to you in your daily work on Forex. Just go through the simple registration procedure and download to your health. No spam will be sent to the mail, we guarantee.
To download fractal indicators with alerts and other additional settings, you need to be registered on our website. It is not difficult and will only benefit you, so – Register now, and then refresh this page so that the download link appears.