Bill Williams - Fractals indicator

Bill Williams - Fractals indicator

Among the fundamental objectives of each technically oriented traders to search for turning points in the chart is over. Who is able to filter out such points can make based on the change in trend is suggestive promising buy and sell decisions.

A very simple form of the characterization of the target turning points is the indicator approach fractals by Bill Williams dar. As a point of reversal is accordingly each bar chart, which is higher or lower than its two neighboring bar chart. To confirm the validity of a possible reversal of the concept is in many Abwandlungend also increased the number of confirmation relied on neighboring bars.


The original approach of Williams receives the following traders now have a large amount of turning points from which the majority will prove to be unusable. To filter the items themselves, the use of one Trendstzärke indicator, since there can be no trend no trend reversal.

Reich is helpful here, for example, the alligator indicator, for example, you could use the moving average or even the complete indicator. With an increase of the moving average or presence of a strong trend, upper reversal points are filtered out as well in the opposite case (strong downtrend or moving Avergae is available).