Fractal Levels Indicator

Fractal Levels Indicator

Super tool for finding important support and resistance levels. The Fractal Levels indicator does not redraw, use it to trade Forex and other markets. Suitable for investors and intraday traders.

Fractal levels are local extremes or reversal points on a price chart. The picture below shows:

bearish fractal (marked with red arrows);
bullish fractal (marked with green arrows).
A bullish fractal forms on the bar with the highest high compared to the two bars on the left and the two bars on the right.

A bearish fractal forms on the bar with the lowest low compared to the two bars on the left and two bars on the right.

Fractals were invented and popularized by the famous trader Bill Williams.

How to use fractals in MT5?

By default, the fractal indicator is integrated into all versions of Metatrader terminals.

To add a fractal indicator to the price chart in the MT5 terminal, click Main Menu > insert > Indicators > Bill Williams > Fractals.

You will see gray icons that show bullish and bearish fractals below or above the price bars.

The advantage of fractals is that they show effective support and resistance levels.

The disadvantage of fractals is that they appear with a delay of 2 bars. For example, if you want a fractal to appear on the Tuesday bar on the daily chart, you need to wait for Thursday’s close.

What is the best fractal indicator in MT5?
The standard fractal indicator has one disadvantage – it does not display support and resistance levels indicated by fractals. The Fractal Levels indicator corrects this inconvenience, making it one of the best fractal trading tools on the MT5 platform.

When you add the fractal levels indicator to the price chart, you will see two lines:

The blue line connects the bearish fractals, this is the resistance level.
The red line connects the bullish fractals, this is the support level.
How to trade with the fractal level indicator
It is believed that fractals are not a self-sufficient tool. Fractals do not give simple buy and sell signals through arrows, line crossovers, or other means.

There are many ways to use fractals to get buy and sell signals. For example:

Combination of fractals with moving averages.
Combination of fractals with oscillators.
Using different timeframes.
At the same time, traders can give preference to both reversal signals and breakdown signals.

We will tell you about one of the most effective – the fractal breakdown test.

Fractal levels: buy signal

To enter a long position, you need to:

Find a resistance line connecting several fractals at adjacent levels.
Wait for a breakout – when the bar closes above resistance.
Place a Buy-Limit order where the resistance line was.
Set your stop loss below the low of the bar where the break occurred.
The price chart below shows an example setup.

The signal to open a long position appeared when the price fell to the blue line after a bullish breakout. Closing a position can be done:

At the next resistance level.
Mathematically calculating the reward to be at least 1.5 times the risk.
Using escort tactics.
Fractal sell levels
The figure below shows three consecutive sell setups. All of them brought an open position into profit territory, as the market was in a downtrend, and fractal breakouts indicated its direction.

To close trades, use the methods mentioned above. Or develop your own way that best suits your risk profile.

Conclusion
The fractal levels indicator for Metatrader 4 helps to trade near important levels. It does not redraw, but note that fractals appear with a delay.

The Fractal Levels indicator uses bearish and bullish fractals to plot:

Supply line (resistance).
Demand line (support).
The Fractal Levels indicator for Metatrader 4 allows you to:

trade next to really important levels;
combine support and resistance levels and signals from other indicators;
trade with the trend and against the trend;
Invest long term or trade intraday.
To learn more about fractals, we recommend that you read books by Bill Williams.

Keep in mind that the Fractal Levels Indicator for Metatrader does not guarantee the best buy and sell signals. The price may break through strong levels, reverse from them, or behave differently than you expect.

Therefore, make sure that trading with the Fractal Levels indicator does not destroy your deposit. To do this, first practice trading on a demo account with your preferred broker.

Download the Fractal Levels Indicator for MT5 for Free Now!