Create and Test Forex Strategies
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+ | ====== Fractal ====== | ||
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+ | The **Fractal** indicator is available in the " | ||
+ | Its source code is published in [[http:// | ||
+ | If you have any questions concerning the **Fractals**, | ||
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+ | ===== Introduction ===== | ||
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+ | According to " | ||
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+ | In technical analysis a **Fractal** is a figure which consists of five bars minimum. | ||
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+ | There is an up fractal and a down fractal: | ||
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+ | {{: | ||
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+ | An up fractal consists of five bars where the bar in the middle has the highest price. The chart shows that the highest prices of bars **1**, **2**, **4** and **5** are lower than the highest price of bar **3**. The highest price of bar **3** is called the fractal top. This is also the critical price used to enter or exit the market. | ||
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+ | {{: | ||
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+ | A down fractal consists of five bars where the bar in the middle has the lowest price. The chart shows that the lowest prices of bars **1**, **2**, **4** and **5** are higher than the lowest price of bar **3**. The lowest price of bar **3** is called the fractal bottom. This is the critical price for this fractal. | ||
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+ | ===== Calculation ===== | ||
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+ | A fractal is determined when the highest or the lowest price of each bar is compared to that of the previous two or the following two bars. | ||
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+ | **Forex Strategy Builder** distinguishes between 7 types of fractals, depending on whether they contain | ||
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+ | {{: | ||
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+ | ===== Parameters ===== | ||
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+ | **Logic** - the logic followed when applying the indicator: | ||
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+ | As an opening point of the position: | ||
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+ | * Enter long at an Up Fractal; | ||
+ | * Enter long at a Down Fractal. | ||
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+ | As a closing point of the position: | ||
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+ | * Exit long at an Up Fractal; | ||
+ | * Exit long at a Down Fractal. | ||
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+ | **Visibility** - shows whether the fractal is visible from the point of view of the entry price: | ||
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+ | * The fractal is visible - the chart does not go between the fractal extreme price and the entry price; | ||
+ | * The fractal can be shadowed - the fractal may not be directly seen by the entry price. | ||
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+ | **Default values** | ||
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+ | * Logic - Enter long at an Up Fractal; | ||
+ | * Visibility - The fractal is visible; | ||
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+ | ===== Application ===== | ||
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+ | **1. " | ||
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+ | In this slot, the **Fractal** indicator sets the price at which you can open a new position, add to or take from an already opened position. The entry price is at the top of Up Fractal or at the bottom of Down Fractal. It is important to keep in mind that a fractal consists of five complete bars minimum. This means that between the moment of opening of a position and the top of the fractal there must be at least two complete bars. | ||
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+ | The direction of the position is set by this indicator' | ||
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+ | **2. " | ||
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+ | When positioned in this slot, the **Fractal** indicator sets the close price of an already opened position. | ||
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+ | **Example: | ||
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+ | {{: | ||
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+ | This chart shows an Up Fractal. Since minimum five complete bars are necessary to make a fractal, the price for opening a position (" | ||
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+ | In this example, bar **1** is the first bar which crosses the entry level. From this bar, the fractal top is visible. | ||
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+ | Bars **2** and **3** also cross the entry price but for them the fractal is shadowed. These entry levels will be active only if the " | ||
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