|Welcome to currency trading with Profiforex!
We won't change the indicator's settings.
Bill Williams' fractals are the first dimension of the market.
A buy fractal is a series of five consecutive bars, where the highest high is preceded by two lower highs and is followed by two lower highs.
A sell fractal is a series of five consecutive bars, where the lowest low is preceded by two higher lows and is followed by two higher lows.
Sell and buy fractals can consist of the same bars. Fractals generate the following signals: if a buy fractal is above the Alligator's teeth (the red line),
we would place a Buy Stop order one pip above the maximum of the bar that formed a fractal;
if a sell fractal is below the Alligator's teeth,
we would place a Sell Stop order one pip below the minimum of the bar that formed a fractal.
If the fractal on purchase was formed below Teeth of the Alligator or a fractal on sale – above Teeth of the Alligator, such transaction needs to be passed not to feed the Alligator. Alligator,
Fractals will be active till the time of its destruction, or before appearance of a new fractal in the same direction (in this case the previous signal is cancelled, and the postponed warrant is removed). Very important is where was destroyed the fractal, i.e. on what bar it is necessary to enter into the market after overcoming of a fractal. If this bar is outside Teeth of the Alligator, such transaction is allowed.
Fractals are the first measurement of the financial market. Any input in the market begins with overcoming of a fractal. Only after the first fractal was overcome, we start accepting signals from another dimensions for opening of new line items in the direction of the first signal. Signals from future fractals in the direction of the first transaction which will also form the basis for opening of additional line items.