Fractal divergence is a hidden divergence built on Bill Williams ‘ fractals.

Bullish fractal divergence is a combination of two lower fractals, the last of which is located below the previous one, and the two candlesticks to the right of the minimum of the last fractal have lows above the level of the previous fractal (see screenshot 1).

Bearish fractal divergence is a combination of two adjacent upper fractals, the last of which is located higher than the previous upper fractal, but the two candlesticks to the right of the top of the last fractal do not exceed the level of the first fractal with their maxima (see screenshot 2).

The FractalsDivergence_Pattern indicator displays bullish and bearish fractal divergences in the form of support and resistance zones, marked with rectangles of the corresponding color. The height of each zone is the price difference between the first and second fractals. The left border points to the first divergence fractal, and the right border points to the last bar related to the second fractal, i.e., the bar after which the pattern can be registered.

The resistance zone is displayed in red (the “Bearish Pattern Color” parameter). Its lower bound lies at the maximum of the second fractal (see screenshot 3).

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The support zone is shown in blue (the “Bullish Pattern Color” parameter). The upper boundary of the zone indicates the minimum of the second fractal (see screenshot 4).

You can use the indicator signals both for the price rebound from the support and resistance levels, and for their breakdown. This depends on the trading tactics chosen by the trader.

• Bars on the left. Specifies how many bars on the left should have a lower maximum for registering the upper fractal or a higher minimum for registering the lower fractal.
• Bars on the right. Specifies how many bars on the right should have a lower maximum for registering the upper fractal or a higher minimum for registering the lower fractal.
• Color of bull pattern – the color that will display the bullish fractal divergence.
• Color of bear pattern – the color that will display the bearish fractal divergence.
• Alert on pattern found? – enables / disables the appearance of the Alert window when a pattern is found.
• Notification on pattern found? – enable / disable Push notifications when a pattern is found.
• E-mail notification on pattern found? – enable / disable sending a message to an E-mail when a pattern is found.
• The number of bars to display – the number of bars on which the indicator readings will be displayed. Value 0 – all available history.

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