Fractal indicator

As you know, the movement along the trend occur only in 15-30% of the time and make the most profitable trade will be periods during which the price varies according to the trend.

Distinguish fractals up and down. Fractals, upward, can be seen on the chart after the formation of a series of candles (bars), whose number is 5 or more. In these before and after the peak located at 2 candles on each side with lower maxima.

Fractals down identical fractals up, but are configured down.

 Many traders use Fractal indicator together with Alligator, which was also the creator of B. Williams. When the location of the fractal below Zubov Alligator (red moving average) is not desirable to open long positions, at the location of the above - short. If a fractal is located outside the mouth of Alligator, this suggests the formation of a fractal as a signal - the latter is relevant to the emergence of strong new signal fractal.

 

The figure shows that at points A, B and C (fractals are located above Zubov Alligator, open only for the purchase of fractals down) to open long position is profitable. All three are located outside the fractal Mouth Alligator, ie are valid until a new fractal.

Points D, E and F are optimal for entry into the market for short trades - 2 profitable, and the last deal closes to 0 or minus a small stop-loss. All 3 fractal directed upwards and are located outside the Mouth Alligator, that is a signal to sell.

Remember that the gains from trade is highly dependent on you have chosen a broker!