<h2>Fractal Indicator</h2>
<p>The Fractal Indicator is a technical analysis tool used to identify potential trend reversals in financial markets. It was developed by Bill Williams, a renowned trader and author of the book "Trading Chaos."</p>

<h2>How It Works</h2>
<p>The Fractal Indicator marks the highest highs (bullish fractals) and lowest lows (bearish fractals) in a given timeframe. It consists of five candles, with the middle candle being the highest or lowest. Here's how it works:</p>
<ul>
  <li>Bullish Fractal: A series of five candles where the middle candle is the highest, and the candles on either side are lower. This indicates a potential trend reversal to the upside.</li>
  <li>Bearish Fractal: A series of five candles where the middle candle is the lowest, and the candles on either side are higher. This indicates a potential trend reversal to the downside.</li>
</ul>
<p>The indicator can be customized with different colors and line widths for better visualization on charts.</p>

<h2>Why It Matters for Traders</h2>
<p>The Fractal Indicator is a valuable tool for traders as it helps in:</p>
<ul>
  <li><strong>Identifying Trend Reversals</strong>: Fractals can signal a change in the market's direction, allowing traders to enter trades in the direction of the new trend.</li>
  <li><strong>Confirming Trend Continuation</strong>: When fractals align with the current trend, they can confirm its strength and provide opportunities for traders to add to their positions.</li>
  <li><strong>Setting Stop Loss Levels</strong>: The high or low of a fractal can serve as a logical stop loss level, helping to manage risk.</li>
</ul>

<h2>Example</h2>
<p>Consider the following example on the EUR/USD pair using MetaTrader 5:</p>
<p><img src="fractal_example.png" alt="Fractal Indicator Example" width="600"></p>
<p>In this example, a bearish fractal (marked with a red arrow) signals a potential trend reversal. A trader could short the pair at the fractal's high, with a stop loss above the high of the fractal. Conversely, a bullish fractal (marked with a green arrow) signals a potential trend reversal to the upside.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>The Fractal Indicator helps identify potential trend reversals by marking highs and lows in a series of five candles.</li>
  <li>Bullish fractals signal potential upside reversals, while bearish fractals signal potential downside reversals.</li>
  <li>The indicator can be used to confirm trends, set stop loss levels, and make informed trading decisions.</li>
</ul>