William Fractals + Signals

The William Fractals + Signals indicator identifies key Williams Fractal levels and generates automated trading signals based on price sweeps of these levels. It provides a robust framework for identifying potential market reversals and failed breakouts by monitoring the interaction between current price action and historical fractal points.

Usage

The Usage section focuses on identifying market turning points using specialized fractal logic. A signal is generated when price "sweeps" a previously established fractal level:

• Buy Signal (Green Triangle): This occurs when the price drops below a Down Fractal's low but manages to close back above it. This suggests a failed breakdown and a potential bullish reversal.
• Sell Signal (Red Triangle): This occurs when the price rises above an Up Fractal's high but closes back below it. This suggests a failed breakout and a potential bearish reversal.

Common examples of use include finding stop-hunt levels where price may reverse or setting stop-loss levels based on the most recent fractal high or low.

Details

The script implements Williams Fractals, which are patterns of at least five bars where the center bar has the highest high or lowest low compared to the 'n' bars surrounding it.

• Up Fractal: Formed when the center bar's high is greater than the 'n' bars before and after. The logic allows for up to four bars after the center to have equal highs before requiring a lower high, ensuring more flexible pattern recognition.
• Down Fractal: Formed when the center bar's low is lower than the 'n' bars before and after. Similar to the up fractal, it permits up to four bars with equal lows.

To maintain performance and relevance, fractal levels are stored in memory and automatically removed once a sweep signal has been triggered.

Settings

• Periods: Determines the number of bars to check before and after the center bar (default is 10, minimum is 2). A higher value results in more significant but less frequent fractals.
• Maximum Stored Fractals: Controls how many fractal levels the script keeps in memory. Limiting this prevents cluttered signals and ensures the tool focuses on recent price structure.

FAQ

How do I use the William Fractals + Signals indicator? You can apply the indicator to your chart to see automated buy and sell triangles based on fractal sweeps. These often highlight areas where liquidity has been taken before a reversal.

Are the signals repainting? Signals are generated only on the close of the bar to ensure the "sweep and close" condition is confirmed, preventing false signals that might disappear mid-bar.

Where can I find more tools like this? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.