Bill Williams indicators
Fractals (Bill Williams)
Little arrows that mark local tops and bottoms: a high with two lower highs on each side, or a low with two higher lows.
Die Idee in einfachen Worten
Prices move in swings. Fractals mark the turning points of those swings, giving you natural levels where the market changed its mind, and a breakout above the last up-fractal shows new strength.
So wird gerechnet
An up fractal is a candle whose high is higher than the highs of the two candles before and the two after. A down fractal is the mirror image for lows.
Up fractal at candle i: high(i) > high(i±1) and high(i) > high(i±2)
Down fractal: low(i) < low(i±1) and low(i) < low(i±2)Anwendung
- Buy stop just above the latest up fractal, sell stop just below the latest down fractal (Williams' breakout entries).
- Use recent fractals as stop-loss levels.
Schlüsse ziehen
- Because two later candles are needed, a fractal appears two candles after the actual high or low.
Beispiel
On a 1-hour chart an up fractal forms at 1.0870. An hour later the price breaks above 1.0871: a breakout entry.
Kurse in Beispielen dienen der Veranschaulichung.
Worauf man achten sollte
- Many small fractals form in quiet markets; higher timeframes give more meaningful ones.
Ein wenig Geschichte
Bill Williams, "Trading Chaos" (1995), borrowing the word from chaos theory.
Nur Bildungsinhalte. Kein Indikator und kein Muster sagt die Zukunft voraus, und nichts hier ist eine Anlageberatung.