Williams Fractals Indicator on Gold

What it shows

Small triangles on the price chart. A teal triangle sits above a candle that is a fractal high and a red one sits below a candle that is a fractal low (default colours). The triangle is drawn on the swing candle itself, even though the pattern only completes a couple of candles later.

How Pravex works it out

1. The setting is the number of candles on each side, 2 by default and never below 2.
2. A fractal high at one candle needs its high above the highs of the next few candles (2 by default), and above the highs of the same number of candles before it. Up to four candles right before it that tie its high are skipped first, so a double top with equal highs can still count.
3. A fractal low is the mirror image, using lows.
4. The mark is placed on the swing candle, but it can only appear once that many more candles have closed after it. That delay is built in.

Settings

Setting	Default	What changing it does
Candles on each side	2	How many candles on each side must be lower (for a high) or higher (for a low). 2 gives the classic five-candle pattern. Bigger numbers find fewer, larger swings, and each mark shows up that many candles later.

How traders read it

Traders use fractals as swing points. A fractal high is a recent peak some traders watch as resistance and as a breakout level, and a fractal low is the same for support. Stops are often placed just beyond the latest fractal on the other side of a trade.

Picture a fractal low at 95 with price now at 100 (made-up figures). A close below 95 breaks that swing low, which swing traders read as a possible change of trend, and some keep their stop just under it.

When it misleads

Fractals are late by design: the last one you see is a couple of candles old at least, so by the time it is drawn price has already moved away from it. On a choppy gold chart there are a great many, and a mark is not a reversal call, only a swing. In a strong trend with shallow pullbacks they get rare. The mark for the newest candle can still vanish until that candle closes.

Questions and answers

What counts as a Williams fractal?

A candle whose high is above the highs on both sides (a fractal high) or whose low is below the lows on both sides (a fractal low). The default checks two candles each way.

Why does a fractal mark appear after the swing, not on it?

The pattern needs the candles on its right to close without beating the swing. The mark is placed back on the swing candle, but it can only show once those candles exist.

How many candles on each side should I use?

There is no best one. 2 follows minor swings. Raising it to 3 or 5 keeps only bigger swings and delays each mark by the same number of candles.

How are fractals different from Pivot Points High Low?

Both mark swings. Fractals use one width for both sides and need strictly lower highs on each side (ties on the left are skipped). Pivot Points High Low has separate left and right lengths and allows ties on the right.

Related: Pivot Points High Low, Pivot Points Standard, Auto Trendlines, every indicator.