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Fractals

All markets are characterized by stability of prices during the long period of time and only sometimes (15-30 % of the time) trends' changes can occur. The most profitable periods are when prices at the markets change according to the definite trend.

Fractals represent one of five Bill William's indicators aimed to detect bottom or top. The technical determination of upward fractal is a range of at least 5 consecutive bars where two bars with lower highs are placed before and after the highest high. The contrary configuration (range of five bars where two bars with the higher lows are before and after the lowest low) is downward fractal. On the chart Fractals have High and Low values; they are indicated by the down and up arrows.

Signals of Fractals technical indicator should be filtered by the technical indicator Alligator. In other words, you should not buy if Fractal is lower than Alligator's teeth, and you should not sell if Fractal is above the Alligator's teeth. After the Fractal signal is formed and has its power, which is confirmed by its position outside the Alligator's mouth, it stays as a signal until it is stricken or until new Fractal signal appears.

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