Fractals V9

The Fractals V9 indicator provides a comprehensive toolkit for identifying fractal-based market structures, pivot points, and harmonic patterns across multiple timeframes. By combining classic fractal detection with higher timeframe analysis and automated pattern recognition, it helps traders visualize trend shifts and potential reversal zones.

Usage

The Usage section describes how the script can be used to identify key market turning points. Users can choose between standard fractal detection or a filtered Bill Williams method to define swing highs and lows.

• Market Structure: The tool automatically labels Higher Highs (HH), Lower Highs (LH), Higher Lows (HL), and Lower Lows (LL) based on identified fractals. This allows for quick identification of current trend direction.
• Multi-Timeframe Analysis: Users can project fractals from a higher timeframe (e.g., 240m) onto the current chart. This helps in identifying major support and resistance levels that might not be visible on lower timeframes.
• Harmonic Patterns: When enabled, the script scans the resulting ZigZag structure for specific price relationships. It can detect patterns such as Bat, Butterfly, Gartley, Crab, Shark, and Head & Shoulders, plotting labels when these configurations complete.
• Visual Channels: The script can plot three distinct levels of channels based on regular fractals, pivot labels, or higher timeframe fractals, providing dynamic price boundaries.

Details

The script operates by analyzing price action across a 5-bar sequence. A standard fractal is confirmed when the middle bar has the highest high or lowest low compared to the two bars preceding it and the two bars following it.

The implementation includes two logic modes:

1. Bill Williams Fractals: Uses a comparison where the central bar is greater than or equal to the surrounding bars.
2. Regular Fractals: A stricter filtered version where the central bar must be strictly higher (or lower) than the surrounding sequence.

The ZigZag logic connects these fractal points to create a continuous path of market movement. This path is then used as the foundation for the harmonic pattern recognition engine, which calculates Fibonacci ratios between the points (X, A, B, C, D) to identify specific geometric price patterns.

Settings

• Show Patterns?: Toggles the visibility of harmonic and geometric pattern labels.
• Show Bar Colors?: Colors the price bars based on the current ZigZag direction.
• Filter Bill Williams Fractals?: Switches the fractal detection logic between the standard Bill Williams method and a stricter regular fractal filter.
• Show HH/LL Pivot labels?: Enables or disables the [HH], [LH], [HL], and [LL] text labels on the chart.
• Timeframe: Sets the secondary timeframe for higher-level fractal analysis.
• Show Higher Timeframe Fractals?: Toggles the visibility of fractals calculated from the selected higher timeframe.
• Repaint?: Controls whether higher timeframe data uses lookahead; enabling this can provide more precise historical placement but will change as new data arrives.
• Show Channels (1, 2, 3): Three separate toggles to display price channels based on different fractal tiers.
• Show ZigZag?: Displays the line connecting confirmed fractal points.

FAQ

How do I interpret the different fractal labels? Triangles represent standard fractals, square labels with [HH/LL] indicate pivot-based market structure, and labels like [TH/TL] represent Timed (higher timeframe) fractals.

Why do some patterns disappear or move? Fractals and ZigZag structures require confirmation from subsequent bars (typically 2 bars). If the "Repaint" option is enabled for higher timeframe fractals, they may adjust their position to match the actual peak of that higher timeframe bar once it closes.

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