Indicator of fractals and price channel.

Trading using fractals has long become common among Forex traders; it is this method of technical analysis that allows one to identify a certain pattern in the movement of a trend and find its most significant points.

Fractal indicator - uses points found based on fractal analysis to build price channels.

The first impression of the tool is not bad; it is immediately clear that it can be used for trading in many trading strategies.

Download the Fractal Indicator

Immediately after adding a currency pair to the chart, we observe the appearance of two multi-colored lines that act as the boundaries of the price channel.

The upper blue line acts as a resistance level, while the lower red line acts as support. In addition, yellow triangles also appear - these are the minimums and maximums of the price at certain segments of the trend movement; they serve as an excellent guide when opening new transactions, as they allow you to assess the current position of the price on the market.

The setup is as simple as possible, you can only change the number of bars involved in the formation of lows and highs, thereby making the channel smoother or, on the contrary, quickly responding to price changes.

Also, when the Leftbars and Rightbars indicator decreases, the number of entry signals increases, and the price channel itself narrows. The fractal indicator performed well when used in the “Level Breakout” strategy ; it is quite clearly visible when the price breaks through one of the channel boundaries and changes the dynamics of its movement. If desired, other trading strategies can be applied.