A Three-Candle Fractal Arrow Indicator

Summary

This note describes LW_Fractals, an indicator that marks fractal-like turning points with arrows. It contrasts the conventional Bill Williams fractal formation, which uses five candlesticks with the middle candle having the highest high or lowest low, with this indicator's use of only three candlesticks. The shorter formation is the central methodological distinction presented.

The document identifies an author and says the indicator was first implemented in MQL4 and published in 2008. It gives no details about how the three-bar rule handles confirmation, whether signals can change after appearing, or what entry and exit logic should follow an arrow. There are no backtests, comparisons against the five-bar definition, or risk-management guidance. Traders can learn the indicator's basic pattern concept, but the note alone does not establish its predictive value or explain how to use it as a complete trading strategy.

Key ideas

• A conventional Bill Williams fractal uses five bars, with the middle bar marking a local high or low.
• LW_Fractals draws its arrow using a three-candlestick formation.
• The shorter pattern is presented as the indicator's defining variation.
• The note provides no signal confirmation rules, trading plan, or performance evidence.
• The indicator's predictive value cannot be assessed from the description alone.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.