Fractals (Williams Fractals)

Williams Fractals, developed by Bill Williams, identify potential reversal points on price charts. A fractal is a 5-bar pattern where the middle bar has either the highest high (up fractal) or the lowest low (down fractal) compared to the two bars on each side.

Up Fractal:   High[2] < High[0] > High[-2]
              (center bar has highest high in a 5-bar window)

Down Fractal: Low[2] > Low[0] < Low[-2]
              (center bar has lowest low in a 5-bar window)

The indicator outputs 1.0 when a fractal is detected, 0.0 otherwise.

• Price structure — marks significant swing highs and swing lows.
• Lagging by 2 bars — a fractal is only confirmed after 2 bars close past the center bar.
• Support/Resistance — fractal levels act as natural support and resistance zones.
• Part of Williams' system — designed to work with Alligator for trade entries.

Breakout entry

• Buy: Price breaks above the most recent Up Fractal level.
• Sell: Price breaks below the most recent Down Fractal level.

With Alligator

• Buy: Up Fractal forms above the Alligator's Teeth — valid buy signal.
• Sell: Down Fractal forms below the Alligator's Teeth — valid sell signal.
• Fractals between the Teeth are considered invalid and should be ignored.

Fractals use a fixed 5-bar pattern — no configurable parameters.

| Component | Description | |-----------|-------------| | FRACTALS_UP | Up fractal detected (1.0) or not (0.0) | | FRACTALS_DOWN | Down fractal detected (1.0) or not (0.0) |

| Condition | Meaning | |-----------|---------| | FRACTALS_UP > 0 | Up fractal detected — potential resistance / reversal down | | FRACTALS_DOWN > 0 | Down fractal detected — potential support / reversal up |

• Fractals are most effective when combined with the Alligator indicator.
• Use fractal levels as stop-loss placement points — place SL beyond the last fractal.
• On higher timeframes fractals identify major support/resistance levels.
• Multiple fractals at similar price levels create a stronger support/resistance zone.
• Fractals appear frequently — always filter with a trend indicator to avoid noise.