Williams Fractals / Goldilocks Edition / [NPR21]

This indicator, Williams Fractals — Goldilocks Edition, is a high-visibility technical analysis tool designed to identify key price reversal points on your chart. It is a refined version of the classic Williams Fractal, optimized for modern dark-themed trading environments with an emphasis on clarity and precise visual anchoring.

Indicator Description

The indicator identifies local price peaks (Highs) and valleys (Lows) using a specific look-back and look-forward period. Unlike standard fractals that can be difficult to read, this version features:

* Enhanced Contrast: Darkened background labels (Deep Teal for Buy, Deep Red for Sell) that make the white and yellow text highly legible.

* Long "V" Stems: Integrated arrow extensions that bridge the gap between the label and the candle, pointing precisely to the pivot point to remove any ambiguity during high volatility.

* Customizable Spacing: User-defined offsets that allow the labels to sit comfortably above or below price action without overlapping other indicators.

How to Use It

1. Identify Reversals: A BUY signal appears under a local low, suggesting a potential upward move. A SELL signal appears above a local high, suggesting a potential downward move.
   
   
   1. Support & Resistance: Use the fractal points to draw horizontal support and resistance lines.
      
      
      1. Trend Confirmation: Fractals are most effective when used in conjunction with other indicators (like the EMA or WMA visible in your setup) to confirm trend direction.
         
         
         1. Wait for Confirmation: Remember that a fractal is only "confirmed" after $n$ bars have closed to the right of the signal.
            
            Understanding the "Periods (n)" Setting
            
            The frequency of signals is entirely dependent on your Periods (n) input.
            
            
         2. Lower Values (e.g., n=2): The indicator will find many local pivots, resulting in more frequent signals. This is useful for scalping or lower timeframes but may lead to more "noise".
            
            
         3. Higher Values (e.g., n=5 or 10): The indicator requires a more significant peak or valley to trigger, resulting in fewer, more significant signals. This is better for identifying major trend shifts.