MTF Fractal Indicator
MTF Fractal indicator is a technical tool for identifying pullbacks and trend reversals. You can also use the indicator as support and resistance.
Description
The MTF Fractal indicator for MT5 is one of the main tools used to determine a trend reversal (rollback or the emergence of a new trend). They allow you to enter the most profitable point and earn a lot of points even for one order.
At the same time, the fractal indicator always works without redrawing, due to which its signals are particularly accurate. In practice, traders use both the basic version of the tool and modified algorithms.
It is about them that will be discussed in this article.
How does the MTF Fractal indicator work?
The MTF Fractal indicator provides traders with fractals of all timeframes on one selected chart.
By default, down fractals are highlighted in blue, up fractals in red. When you hover the mouse over the line, the indicator displays information about the timeframe on which the fractal is formed and its price level.
The MTF Fractal indicator is convenient for traders who use elements of fractal theory in their trading. The indicator makes it easy to work, allowing you to see all the information on one screen without opening additional tabs.
The indicator can also serve as one of the elements for creating your trading system or improving an existing one.
MTF Fractal indicator trading strategy
Now let’s discuss the trading strategy of the MTF Fractal indicator.
Buy setup
- Whenever you see an up fractal (blue line), wait for the bullish candle to complete its course above the fractal support.
- Place a buy stop order a few pips above the high of the candle.
- Place your stop loss just below the fractal support.
- Take profit and close the position manually when you see down fractals on the chart. Alternatively, you can place a take profit at the next horizontal resistance level on the chart.
Sell setup
- Whenever you see a down fractal (red line), wait for the bearish candle to complete its move below the fractal resistance.
- Place a sell stop order just below the low of the candle.
- Place your stop loss just above the fractal support.
- Take profit and close the position manually when you see fractals on the chart. Alternatively, you can place a take profit at the next horizontal support level on the chart.
MTF Fractal conclusion
The MTF Fractal is a trend indicator that is commonly used to detect a trend retracement or trend reversal. The indicator can be applied on any timeframe. However, relying solely on the indicator is unwise. You can combine other tools to confirm your trade entry and reduce your risk.