Our custom developed Forex Fractal ZigZag Indicator. The fractal indicator is based on a simple price pattern that is frequently seen in financial markets. Outside of trading, a fractal is a recurring geometric pattern that is repeated on all time frames. From this concept, the fractal indicator was devised. The indicator isolates potential turning points on a price chart. It then draws arrows to indicate the existence of a pattern. The bullish fractal pattern signals the price could move higher. A bearish fractal signals the price could move lower. Bullish fractals are marked by a down arrow, and bearish fractals are marked by an up arrow.
- A bullish fractal occurs when there is a low point with two higher low bars/candles on each side of it.
- A bearish fractal occurs when there is a high point with two lower high bars/candles on each side of it.
- An up arrow marks the location of a bearish fractal, while a down arrow marks the location of a bullish fractal.
- Arrows are drawn above or below the middle bar (high or low point), even though the pattern is five bars. There is no way a trader could enter a trade at the arrow because the arrow only occurs if the next two bars create the pattern.
- If someone were to trade fractal signals, the entry would be the open price of the third bar after the arrow.
Feel free to use this indicator together with our other technical indicators (oscillators, momentum) or price action methods to maximize your trading accuracy.
The EUR/GBP 15 minute chart below displays the Forex Fractal ZigZag Indicator in action.
Copy and paste the Forex Fractal ZigZag Indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)
How to remove Indicator from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete