Fine Fractals Indicator For MT4
Table Of Contents:
- Fine Fractals Indicator For MT4
- Trading ideas with the Fine Fractals Indicator For MT4
- Fine Fractals Indicator For MT4 - Sell And Buy Entries
- Fine Fractals Indicator For MT4 - Key Support And Resistance
- Fine Fractals Indicator For MT4 - Conclusion
The Fine Fractals Indicator For MT4 uses Bill Williams Fractals to mark important price peaks, bottoms, and turning points.
Trading ideas with the Fine Fractals Indicator For MT4
The fine fractals indicator is one of the most effective indicators when it comes to identifying key turning points in the market compared to the normal fractals indicator as shown in the image below.
In comparison to the normal fractals indicator the fine fractals appear more frequently and therefore you have more turning points revealed to you throughout the market. The red fine fractals are the ones you find above the price action and they indicate to you the small bearish turning points and then the green fine fractals freckles are found below the price action and they indicate the micro bullish turning points in the market.
Fine Fractals Indicator For MT4 - Sell And Buy Entries
Using the fine fractals indicator on its own can induce a lot of inaccuracy in your trading because it does not provide conclusive information for you to execute any proper trades. So the best idea is maybe to add in a few more indicators. In the image below I have actually added in a total of three additional indicators.
Looking at the image above I have added in a Bollinger bands indicator, a 50-EMA line which is the green thick line going across the screen and then I also included the normal fractals indicator. But as you can see that there are more fine fractals compared to the default fractals indicator which we find in our trading platform.
What I like about this configuration is that it allows me to see key turning points in the market therefore I am able to capitalize on potentially big moves. So essentially most of my attention is on the double fractals which are the moments where you see the arrow and the fine fractals appearing at the same time. So basically I am looking for both arrows and fine fractals to appear outside the extremes of the Bollinger bands indicator. On the left-hand side in the image below I have a bearish trading move.
So basically I just wait for the normal fractal and the fine fractal to appear at the same time above the upper band of the Bollinger bands indicator. Then after that, I will wait for the first downward-facing arrow and fine freckles to appear below the support trendline of the downtrend.
Therefore, I shall open a sell position upon the retracement towards the support trend line. Up next we also have a similar trading opportunity but it is going in the opposite direction - it is a buy trade and it follows the same sequence of pre-qualifying conditions but obviously it has to be applied in an opposite sense.
So basically I wait for the normal fractal arrow and a green fine fractal to appear at the same time below the lower part of the Bollinger bands indicator and then I wait for a breakout to the upside. As you can tell I have already drawn in the resistance line of the downtrend line.
After that I wait for the first upward-facing arrow and fine fractal to appear above the resistance trendline of the downtrend then after that, I look for possible retracement movements towards the resistance trendline. If it does retrace towards the resistance trendline then I will open up a buy upon the completion of this retracement.
Fine Fractals Indicator For MT4 - Key Support And Resistance
The last point I want to mention is that we can use this indicator for identifying support and resistance zones as shown in the image below.
So when you have consecutive and closely aligned fractals in a similar price level below the price action then it signifies support. Then for resistance, if you have consecutive or closely aligned fractals at a similar price level above the price action then it signifies resistance. That is all that you need to know - so now you have a suitable tool to make this exercise simple for you.
Fine Fractals Indicator For MT4 - Conclusion
The fine fractals indicator is an important and handy trading tool to have in possession because it formulates more fractals based on more detailed price activity which the normal fractals indicator is not sensitive enough to. In the article, a distinct difference between the two was drawn showing and proving that there are more fine fractals compared to normal fractals on your screen.
However, as I mentioned it is not wise to trade with this indicator on its own because it will induce unfavorable results in your trading. Therefore, it is considered wise to include a few other indicators into this trading system. That is exactly what I did because I went to the extent of integrating three more indicators over and above the price action and fine fractals indicator.
This allowed me to have more visibility on potential major turning points in the market. However, the fractals indicator was not only used for unlocking trading opportunities. It was shown how you could also use this indicator to identify key support and resistance levels.