Adjustable Fractals Periods, Price Inputs, and Same-Bar Signals

Summary

This brief indicator note describes a customizable version of the classic fractals indicator. It allows the user to change the lookback period, rather than relying on the built-in indicator’s fixed period, and to choose which price series supply the highs and lows. The author suggests alternative price inputs may be useful during unusually whipsaw-prone market conditions.

The note also explains a calculation detail: an upward and downward fractal can both be identified on the same bar, depending on the data and selected period. It argues that allowing both signals is mathematically valid, while forcing one signal per bar could introduce an unsupported bias. No formula, code, test results, or trading strategy are included, so the document teaches configuration and signal interpretation rather than demonstrating indicator performance. The potential usefulness of alternate inputs in extreme conditions is offered as a possibility, not supported by comparative evidence.

Key ideas

• The indicator allows the user to adjust the fractal calculation period.
• It permits separate choices of price inputs for detecting highs and lows.
• Both upward and downward fractals can validly occur on the same bar.
• Suppressing one of two same-bar signals may add a rule that is not justified by the calculation.
• The note provides no performance comparison or trading results.

Tags

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