Fractal is an important mt4 indicator which is used to determine support, resistance of the forex market. Downward and upward channel can be drawn by using this fractal. So it is a helpful trading tool to identify and draw important support and resistance level. This tool helps to find support and resistance area easily.
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First you need to install fractal indicator on your chart. see how to add fractal indicator on your chart
Drawing support, resistance by fractals
In naked chart, sometimes it becomes hard to find support and resistance level. If you install fractal indicator, then you can see fractals on the high and low of the market movement. These high and low of price movement indicate as resistance and support level.
To draw resistance level, you have to find fractals on high area where market price is rejected. Then you have to draw horizontal line by adding those fractal points. Thus you will get resistance level.
To draw support level, you have to find fractals on low level where price pulled back. Then you need to draw horizontal line by adding those fractal points. Thus you will get support level.
You can get trend line using this fractal. You need to add inclined fractals point and then you can draw a trend line like below image.
Drawing upward channel by fractals
Fractals indicator helps to draw upward channel. You need to add inclined fractal points and draw upward line. You need to draw another line parallel to the first line. Thus you will get upward channel like below image.
Drawing downward channel by fractals
This fractal indicator also helps to draw downward channel. You have to add inclined fractal points and draw downward line. You have to draw another line parallel to the first line. Thus you will find downward channel like below image.