Advanced Fractals Indicator

The Advanced Fractals Indicator is a swing trading tool specifically designed to identify repetitive price action patterns on MT5 charts.

In finacial trading, market sentiment changes rapidly depending on the random rise and fall in the supply and demand of an asset. Thus, the price cannot move straight even during a strong trending market situation.

The biggest challenge for technical traders is to identify real price reversal areas. The ability to identify a critical price swing area allows you to identify profitable trading opportunities in any trend condition.

For example, the price moves down for a while after a strong bullish move. You are confident that the market will resume bullish growth again. Thus, it would be better if you could find a bullish price reversal pattern that would confirm the end of the current correction period before confirming a buy order.

Fractals define the simplest and easiest way to identify price reversal areas. It simply places a dot above or below the candle to indicate an upcoming price reversal. For this reason, fractals have become widespread among entry-level swing traders as well as experienced professionals.

How to use fractals to determine profitable buy/sell signals in Forex

The fractal signal appears as tiny little dots at the highs and lows of the candle. Blue dots below the low of the candle indicate a bullish price reversal. On the other hand, a red dot at the top of the candle signals a bearish reversal.

This indicator closely monitors random price movements. It gives a reversal signal every time the price shows an opportunity to change its direction. That is why it gives frequent signals on shorter timeframes. This is one of the main reasons for its wide popularity among scalpers and intraday traders. However, the frequency of the signal becomes lower when you apply it on longer time frame charts.

Because it offers frequent signals, finding every fractal point might not be a good idea. We recommend adding other technical factors such as support/resistance or moving averages to filter out valid fractal signals.

In the image above, we have combined fractal dots with horizontal support/resistance levels to predict buy/sell setups. As you can see, the signals that appeared near the support and resistance zones are more reliable than the signals generated in the middle of an unstable market.

Conclusion

The Advanced Fractals indicator offers one of the easiest ways to spot price reversals. When you apply it, your goal is to find the best reversal signals at the correct market levels. Thus, combining it with other price action tools such as support/resistance, trend lines and moving averages can bring better trading results. According to our review, this swing trading super indicator is better suited for Forex scalping and day trading.