Fractals

What are Fractals?

Bill Williams Fractals identify bars with the highest high or lowest low relative to 2 bars on each side (5-bar pattern).

• Up Fractal: High is higher than 2 bars before and after (swing high)
• Down Fractal: Low is lower than 2 bars before and after (swing low)
• They mark potential S/R levels

Trading

• Breakout above up fractal = bullish continuation
• Breakdown below down fractal = bearish continuation
• Use fractals to identify swing structure
• Combine with other indicators for entry