Fractal indicator is another useful tool for trend monitoring. It is used more on long timeframe expiration investments, and his task is to create the reversal patterns. The Fractal is represented by small arrows at the bottom and top, following the price developments carts, especially on the Japanese candles chart.
The rule says that a green arrow placed between two red arrows indicate a reversal to the downside, in the opposite case a reversal to the upside. This indicator must not be used alone, because to be able to give a signal it needs to detect previous and future data. We can understand immediately that it is not very suitable for those operate on a very short-term expiration investments. It is not a coincidence that we chose this picture, where an early reversal signal instead to reveal a downward trend, preceded a sudden rise, followed by the right reversal signal.
In any case if we had invested with a 60 seconds expiration time, we would be finished out of the money. The fractal is used together with Fibonacci retracements or by the Alligator.
We suggest to use indicators with our partner Trading View and take a look also at the Candlestick Patterns guide.
