Williams Fractal

Name Type Prerequisite Use Cases
Williams Fractal (FRAC) Structure OHLC Data Defines support and resistance levels based on local price reversals.

Definition

A recurring pattern that predicts reversals. Fractals are indicators on candlestick charts that identify reversal points in the market.

Mathematical Equation

\[\n\text{Bullish Fractal}: L_3 < L_1, L_2, L_4, L_5 \\\n\text{Bearish Fractal}: H_3 > H_1, H_2, H_4, H_5\n\]

Special cases

  • Maximum possible value: Price Levels
  • Minimum possible value: Price Levels
  • Behavior: Highlights specific price points on the chart (local highs and lows).

Visualization

Williams Fractal

Trading Significance

  • Category: Pattern

  • Use Case: Identifies entry and exit points based on geometric price patterns.