True Fractal Band MTF Indicator

True Fractal Band MTF Indicator

The True Fractal Band MTF Indicator shows red and green fractals on the chart with bands to help you grasp the trend.

The True Fractal Band MTF Indicator comes with green and red fractal arrows that determine the potential bias of the market. The red arrow shows a sell bias, while the green arrow shows a buying potential.

The price remains wrapped by the indicator bands that act as potential support and resistance. The arrows appear around the bands showing a possible reversal.

The indicator is straightforward and does not need further interpretation. As simple as buying on the green arrow and selling on the red arrow.

You can use the tool at any timeframe. However, the probability increases when used on higher timeframes.

How to use the True Fractal Band MTF Indicator for MT4?

The GBPUSD chart from the D1 timeframe shows the BUY/SELL signals of the indicator.

The indicator comprises two extreme bands with midline and fractal arrows. The extreme band act as support and resistance, while the midline acts as an average price level.

As soon as the price hits the lower extreme band, wait for the price green fractal to appear. Do not enter a long position until you see a price rejection and the close of a bullish candle. Once the candle close, enter long with a stop-loss just below the fractal level. You can hold until the bearish fractal appears or close when the price hits the midline.

Similarly, you can enter a short position if the price hits the upper extreme band and the price shows a rejection with a red fractal. Hence, wait for the bearish candle to close and enter short with a stop-loss just above the fractal level and take profit around the midline or through the midline to the extreme lower band.

Although the indicator belongs to the trend family, it doesn’t give a broader trend confirmation, as the bands tend to stay closer to the price. Hence, you can face several false signals in a row when there is substantial price momentum.

Conclusion
The True Fractal Band MTF Indicator for MT4 is a trend indicator that makes it easier for traders to assess the trend formation. However, you may encounter many false signals in a strong trend movement. Therefore, you should include any other indicator or price action to confirm the entries.