Fractal Channel Indicator: Building Price Bands from Fractal Windows
Summary
The Fractal Channel is a channel-based indicator that identifies fractals within a configurable window of price bars. Its sole parameter, called frame size in the description, sets how many bars are considered when locating a fractal. A three-bar window represents a one-bar-left, central-bar, one-bar-right pattern; a five-bar window represents two bars on each side of the center. The channel is constructed from fractals matching the selected window size.
The document explains the parameter through examples but does not specify how channel boundaries are updated, how signals should be traded, or how the indicator performs. It is a concise description of indicator construction rather than a tested trading strategy. Users would need to define signal rules and evaluate behavior across instruments and timeframes before drawing conclusions about its practical value.
Key ideas
- The indicator builds a price channel using detected fractals.
- Its frame parameter specifies the number of bars in the fractal search window.
- A three-bar window forms a one-bar-per-side fractal, while a five-bar window uses two bars per side.
- The description gives no trading rules or performance evidence for the channel.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.