Fractal
a.k.a. Williams fractal
A five-bar pattern marking a local high or low; also the idea that charts look similar at every time frame.
In plain English
A five-bar pattern marking a local high or low; also the idea that charts look similar at every time frame.
In Bill Williams' trading tools, a fractal is a simple marker: a bar with a higher high than the two bars on each side (an up fractal) or a lower low than its neighbours (a down fractal). Traders use them to mark swing points and place stops.
More broadly, 'fractal' describes the self-similar nature of markets: a five-minute chart and a weekly chart often look alike, which underpins ideas such as Elliott waves.
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