How do I trade with fractals?

In Bill Williams system, wait for price to break above/below a fractal while the Alligator is awake (trending). Place stop at opposite fractal.

Key Takeaways

Difficulty:Intermediate

Reliability:Moderate

Category:advanced

Timeframes:1H, 4H, Daily

Williams Fractals

advanced📊 1H, 4H, Daily

Five-bar pattern identifying local highs and lows as potential reversals.

Formula

Code

Up Fractal: Bar has highest high with 2 lower highs on each side

Down Fractal: Bar has lowest low with 2 higher lows on each side

Detailed Explanation

Williams Fractals identify turning points in price using a 5-bar pattern.

Pattern:
- Up Fractal: Middle bar has highest high, with two lower highs on each side
- Down Fractal: Middle bar has lowest low, with two higher lows on each side

Trading Setup Example

Entry, stop loss, and take profit levels.

📈 Buy Setup

📉 Sell Setup

Always wait for signal confirmation before entering a trade.

Where This Indicator Works Best

Trend context and market position.

📈 Bullish Context

📉 Bearish Context

Requires advanced market analysis.

Live Chart — Williams Fractals

See Williams Fractals in action on a live chart. Try changing the settings and timeframe.

Williams Fractals is a manual drawing tool or chart type and cannot be auto-overlaid as a study.

Open Chart on TradingView

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📈 Bullish Signals

Price breaks above up fractal with Alligator confirmation

📉 Bearish Signals

Price breaks below down fractal with Alligator confirmation

Python Implementation

Basic fractal detection

Python

def fractals(df):

df['fractal_up'] = (df['high'] > df['high'].shift(1)) & (df['high'] > df['high'].shift(2)) & (df['high'] > df['high'].shift(-1)) & (df['high'] > df['high'].shift(-2))

df['fractal_down'] = (df['low'] < df['low'].shift(1)) & (df['low'] < df['low'].shift(2)) & (df['low'] < df['low'].shift(-1)) & (df['low'] < df['low'].shift(-2))

return df

TradingView Pine Script

Try on TradingView

JavaScript

//@version=5

indicator("Fractals", overlay=true)

up = ta.pivothigh(high, 2, 2)

down = ta.pivotlow(low, 2, 2)

plotshape(up, style=shape.triangleup, location=location.abovebar, color=color.green)

plotshape(down, style=shape.triangledown, location=location.belowbar, color=color.red)

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MT5 MQL5 Code

C++

int fractal_handle = iFractals(_Symbol, _Period);

double up_fractal[], down_fractal[];

CopyBuffer(fractal_handle, 0, 0, 100, up_fractal);

CopyBuffer(fractal_handle, 1, 0, 100, down_fractal);

Common Mistakes

✗Trading fractals in isolation

✗Not waiting for confirmation bars

Confirmation Signals

Alligator indicator

Price breaks fractal level

Volume

Best For

Swing point identificationStop placementBill Williams strategies

💡 Pro Tips

•Part of Bill Williams system
•Fractals appear after 2 bars of confirmation
•Best combined with Alligator indicator

Last updated: February 8, 2026

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

Learn More

Investopedia - Technical Indicators— Financial Education BabyPips - Technical Indicators— Trading School MetaTrader 5 Docs— Official Documentation

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