Fractal Break Signals from Close Prices and Recent Swing Levels

Summary

This indicator compares the current close with the latest detected upper and lower fractals and assigns a directional label. A close above the latest upper fractal receives a positive label, while a close below the latest lower fractal receives a negative label; closes between those levels receive a neutral label. The indicator has no adjustable parameters.

An upper fractal is defined by a bar whose high exceeds the highs of the two bars on either side. A lower fractal is defined by a bar whose low is below the lows of the two bars on either side. The document explains the signal rules but provides no performance results, trading rules for entries or exits, or risk controls. Fractal recognition also depends on bars to the right of a candidate bar, so the description alone does not establish when a newly formed fractal becomes available for live use.

Key ideas

• The indicator compares closing prices with the most recently detected fractal levels.
• A close above the upper fractal produces a positive label, and a close below the lower fractal produces a negative label.
• Fractals use a center bar whose high or low exceeds the corresponding values of two neighboring bars on each side.
• The indicator has no adjustable parameters and no stated performance evidence.

Tags

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