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Fractal Nesting

By LuxAlgoAug 9, 2026

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Fractal Nesting draws market structure at three degrees at once — a short-term zigzag built from raw swing pivots, an intermediate-term path assembled from short-term swings, and a long-term path assembled from intermediate ones. It is the definitive clean build of fractal nesting: one recursive rule applied degree over degree, with ST/IT/LT tags, an alignment tint and a per-degree dashboard. Each higher degree is assembled from confirmed pivots of the degree below, so the three paths nest by construction.

How to Trade the Fractal Nesting?

  • Full bullish or bearish alignment: when all three degrees are in same-direction legs the background tints and an alert fires — the trend-following condition.
  • Mixed alignment: a short-term leg turning against the higher degrees is where pullbacks end or reversals begin; the alignment-broken alert flags the moment agreement fails.
  • New IT and LT pivots: each confirmation (alertable) updates the dashboard's Last High and Last Low — tiered invalidation for the entry idea and the wider thesis.

Fractal Nesting Settings

  • Base Pivot Length (default 1): bars required on each side of a raw pivot. 1 reproduces the classic recursive definition; larger values pre-filter noise at the cost of later confirmation.
  • Short-Term / Intermediate-Term / Long-Term (all enabled by default): draw each degree's zigzag; the inline Labels toggles tag confirmed pivots (off for short-term, on for the higher degrees).
  • Highlight Full Alignment (default enabled): background tint while every degree points the same way.
  • Show Dashboard (default enabled), Position (default Top Right), Size (default Small): leg direction and latest confirmed high/low per degree, plus the combined alignment state.
  • Degree colors, line widths and Label Size (default Tiny) are cosmetic.

Frequently Asked Questions

How is Fractal Nesting different from a ZigZag?

A ZigZag plots one swing path at one sensitivity, so reading several scales means juggling instances. Here the higher degrees are derived from the lower one by rule, so an intermediate leg always encloses a complete short-term sequence.

Do the zigzag lines repaint?

Confirmed pivots are fixed once drawn. The latest vertex of a degree can still move to a more extreme same-side pivot until an opposite-side pivot confirms — inherent to any swing construction — and alerts fire only on confirmed events.

Which degree should I trade from?

Match the degree to your holding period and use its neighbors as context: enter with the short-term turn, in the direction of the intermediate leg, with the long-term pivot as thesis-level invalidation.

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