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Technical Studies Reference


Bill Williams Fractal Signals


Description

The study calculates and displays the Bill Williams Fractal signals.

Let \(H_t\) and \(L_t\) denote the High and Low Prices at Index \(t\). Let \(N\) be the number of bars in the chart, and let \(k\) denote the Arrow Offset Percentage Input. The Buy and Sell Fractal Signals are generated for \(t \geq 2\) and \(t + 2 < N\) according to the following rules.

Buy Fractal Signals generated at Index \(t\) are indicated by green arrows drawn at the position \(H_t + \frac{k}{100}(H_t - L_t)\) if the following conditions are met.

  • \(H_t > H_{t - 1}\)
  • \(H_t > H_{t - 2}\)
  • \(H_t > H_{t + 1}\)
  • \(H_t > H_{t + 2}\)

Sell Fractal Signals generated at Index \(t\) are indicated by red arrows drawn at the position \(L_t - \frac{k}{100}(H_t - L_t)\) if the following conditions are met.

  • \(L_t < L_{t - 1}\)
  • \(L_t < L_{t - 2}\)
  • \(L_t < L_{t + 1}\)
  • \(L_t < L_{t + 2}\)

Alert Example

Since the Bill Williams Fractal does not provide a signal on the current bar, and instead references the previous 2 bars, for an Alert Formula you need to use the following formula to alert when a signal occurs: =OR(SG1[-1], SG2[-1], SG1[-2], SG2[-2])

Inputs

  • Arrow Offset Percentage: This is a percentage where 1 equals 1%. This specifies a percentage of the High to Low range of a bar which is used to offset the Up and Down triangles (default Subgraph Draw Style) from the High and Low of a bar, respectively.

Spreadsheet

The spreadsheet below contains the formulas for this study in Spreadsheet format. Save this Spreadsheet to the Data Files Folder.

Open it through File >> Open Spreadsheet.

Bill_Williams_Fractal_Signals.222.scss


*Last modified Tuesday, 31st January, 2023.