Fractal Channel Indicator
Platform: MT4 Type: Channel Last update: October 15, 2024The Fractal Channel Indicator for MT4 provides a continuous channel formed by connecting the successive Up and Down fractals. As the name suggests, the indicator is based on fractals, which were originally introduced by Bill Williams.
An Up-Fractal is a series of 5 consecutive bars with the highest high in the middle and two lower highs on both sides. Similarly, a Down-Fractal is a series of 5 successive bars with the lowest low in the middle and two lower lows on both sides.
Closer look on the Fractal Channel Indicator
When you load up the indicator in your MT4 platform, you will see two bands that together define a price channel. These bands act as short-term support and resistance levels. The red band works as a resistance level, and the blue band is considered a support level. The best trading signals occur when the price breaks through these bands, indicating possible start of a longer-term trend.
Buy Signal
Some tips for long trades:
- Price breaks through the red band
- Possible up-trend starts
- Re-entries can be found at the rejection of the blue band
- Exit trade when opposite breakout happens
Sell Signal
Some tips for short trades:
- Price breaks through the blue band
- Possible down-trend starts
- Re-entries can be found at the rejection of the red band
- Exit trade when opposite breakout happens
