Williams Fractal Breakout Strategy with Directional Reversals

Summary

This strategy identifies Williams-style upper and lower fractals from a configurable period window, with additional conditions for tied highs or lows. It tracks selected prior fractal-derived levels and plots them as reference lines. A long setup occurs when price crosses above the lower reference while the bar closes higher than it opened; a short setup occurs when price crosses below the upper reference while the bar closes lower than it opened. Entries are limited to cases where the existing position is nonpositive for longs or nonnegative for shorts, allowing directional reversals.

The document provides the rule logic and backtest configuration, including commission assumptions and a large initial position allocation, but no strategy report or performance interpretation. Its implementation uses closing prices in the fractal calculations despite the high and low terminology, and the chosen historical reference and parameter settings affect the signals. No stop loss, take profit, or broader risk controls are described, so the script alone is not a complete risk-managed trading plan.

Key ideas

• The strategy detects upper and lower fractal patterns over a configurable period window.
• It plots prior fractal-derived values as levels for potential directional crossings.
• Long entries require an upward cross of the lower level and a bullish candle close.
• Short entries require a downward cross of the upper level and a bearish candle close.
• The document supplies no performance evidence or explicit stop-loss and take-profit rules.

Tags

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