MTF Fractal Indicator
MTF Fractal indicator is a technical tool to identify trend retracement and trend reversal. You can use the indicator as support and resistance as well.
CATEGORIES: MT4, SIGNAL, LEVELS
Updated on: 26.10.2023
The MTF Fractals indicator is one of the main tools used to determine the trend reversal (retracement or the emergence of a new trend). They allow you to enter at the most advantageous point and earn many points even with one order.
Moreover, the fractal indicator always works without redrawing, due to which its signals are particularly accurate. In practice, traders use both the basic version of the instrument and modified algorithms. It is about them that will be discussed in this article.
How does the MTF Fractal indicator work?
The MTF Fractal indicator provides the traders with the fractals of all time frames on one selected chart.
By default, down fractals are highlighted in blue, up fractals are highlighted in red. When you point the mouse cursor on the line, the indicator displays information about the timeframe on which the fractal is formed and its price level.
The MTF Fractal indicator is convenient for traders who use elements of fractal theory in their trading. The indicator facilitates the work, allowing you to see all the information on one screen without opening additional tabs.
Indicator can also serve as one element for creating your trading system or improving an existing one.
MTF Fractal indicator trading strategy
Now, let’s discuss the MTF Fractal indicator trading strategy.
Buy setup
Whenever you see an up fractal (blue line), wait for a bullish candle to complete its course above the fractal support.
Place a buy stop order few pips above the high of the candle.
Place the stop-loss slightly below the fractal support.
Book profit and close the position manually when you see down fractals on the chart. Alternatively, you can place the take profit at the next horizontal resistance level on the chart.
Sell setup
Whenever you see a down fractal (red line), wait for a bearish candle to complete its course below the fractal resistance.
Place a sell stop order slightly below the low of the candle.
Place the stop-loss slightly above the fractal support.
Book profit and close the position manually when you see up fractals on the chart. Alternatively, you can place the take profit at the next horizontal support level on the chart.
MTF Fractal conclusion
MTF Fractal is a trend indicator commonly used to detect the retracement of a trend or the trend reversal. The indicator can be applied on any timeframe. However, it is not wise to depend on the indicator solely. You may combine other tools to confirm your trading entry and mitigate the risk.
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