Fractals Trading Signals with Moving Average and Alligator Filters
Summary
This tutorial explains the Bill Williams Fractals indicator and presents three signal approaches for MetaTrader 5. A fractal is identified from a five-bar pattern in which the middle bar marks a local high or low, confirmed after the surrounding bars close. The article first uses arrows as high and low markers, then combines lower fractal arrows with price above a moving average for buys and upper arrows with price below it for sells. A third approach filters fractal signals with the ordering of the Alligator lines and the closing price.
It outlines how to retrieve indicator buffers and code chart comments or signals in MQL5. The material is educational and does not report backtests, transaction costs, or evidence of profitability; the fractal pattern is confirmed with delay, and the suggested rules are presented as simple examples. The article itself advises testing before live use, so the conditions should be treated as hypotheses for evaluation rather than established trading recommendations.
Key ideas
- A fractal marks a local high or low using a five-bar pattern confirmed after the fifth bar closes.
- The basic approach treats lower arrows as lows and upper arrows as highs.
- A moving average filter combines fractal signals with the closing price’s position relative to the average.
- An Alligator filter uses the ordering of its lines and price position to condition buy and sell signals.
- The tutorial explains MQL5 signal coding but provides no reported performance validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.