Description
Williams Fractal is a reversal candlestick pattern, part of Bill Williams’s trading system. This system also comprises such indicators as WilliamsAD, WilliamsPercentR, GatorOscillator, and WilliamsAlligator. The latter is often utilized to refine the signals issued by Williams Fractal.
A Williams Fractal pattern is recognized in uptrend when there is a sequence of at least five bars where the highest price is reached in the middle, preceded and followed by lower highs. Conversely, in downtrend, this sequence would feature the lowest value in the middle, surrounded by higher lows.
An ideal - according to this study - pattern comprises several consecutive highs or lows reaching the extremum value and then reversing the direction. However, non-ideal fractals are also recognized. In non-ideal fractals, the described sequence is interrupted by a new high or low of exactly the same value as the extremum reached: the pattern is completed after the necessary number of successive lower highs or higher lows, depending on the direction of the pattern.
Input Parameters
sequence count
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Defines by how many lower highs/higher lows the extremum value should be preceded and followed. |
Plots
UpFractal
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The bearish Williams Fractal candlestick pattern. |
DownFractal
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The bullish Williams Fractal candlestick pattern. |
For educational purposes only. Not a recommendation of a specific security or investment strategy.
Technical analysis is not recommended as a sole means of investment research.
Past performance of a security or strategy does not guarantee future results or success.