# Fractals

The Fractal indicator is based on a simple price pattern that is often found in the financial markets. Out of trade, a fractal is a recurring geometric pattern that repeats on all time frames. Based on this concept, the Fractals indicator was developed. The indicator highlights potential turning points on the price chart. Then it draws markers to indicate the presence of a pattern. The bullish fractal pattern signals that the price may move up. A bearish fractal signals a possible price decline. Bullish fractals are located below the bars, and bearish fractals are above. 

* A bullish fractal occurs when there is a low point with two higher low bars/candles on either side of it;
* A bearish fractal occurs when there is a high point with two lower high bars/candles on each side;
* Markers are drawn above or below the middle bar (high or low point), even if the pattern is five columns. There is no way for a trader to enter a trade using a marker because it appears only if the next two bars form a pattern;
* If someone were trading fractal signals, the entry would be the open price of the third bar after the marker.

### Calculation

Bearish Fractal = ​High(N)>High(N−2) and

High(N)>High(N−1) and

High(N)>High(N+1) and

High(N)>High(N+2)​

Bullish Fractal= ​Low(N)\<Low(N−2) and

Low(N)\<Low(N−1) and

Low(N)\<Low(N+1) and

Low(N)\<Low(N+2)​

Where,

N=High/low of the current price bar&#x20;

N−2=High/low of price bar two periods to the left of N

N−1=High/low of price bar one period to the left of N&#x20;

N+1=High/low of price bar one period to the right of N&#x20;

N+2=High/low of price bar two periods to the right of N ​

### Main parameters

* Fractal dimension: 3 or 5 by default;
* Period of fractals: Second, Minute, Hour, Day, Week, Month, Year;
* Aggregation type: Current or Custom;
* Value of fractals, 3 by default.

The indicator looks as follows on the chart:

<figure><img src="/files/tTiezQmfzi2j4noH7Lcc" alt=""><figcaption></figcaption></figure>


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