Fractals identify potential reversal points using a 5-bar pattern. A Fractal High forms when a bar has 2 lower highs on each side. A Fractal Low forms when a bar has 2 higher lows on each side.
Parameters (2-bar)
X-Axis: Time (fractal detection dates)
Y-Axis: Price (auto-scaled)
High: Fractal highs — bearish reversal (solid)
Low: Fractal lows — bullish reversal (dashed)
Interpretation
Fractal High: Potential resistance — reversal down
Fractal Low: Potential support — reversal up
Clusters of fractals at same level = strong zone
Requires 2 bars to confirm — slight lag
Trading Signals
Price breaking above a Fractal High = bullish breakout
Price breaking below a Fractal Low = bearish breakdown
Multiple fractals at the same level = stronger support/resistance
Wait for the 2-bar confirmation before trusting a new fractal
Price Overlay
Close Price: Actual closing price (same Y-axis, dashed violet)
Price at fractal high = resistance test
Price at fractal low = support test
Price breaking through fractal cluster = breakout signal