Williams Fractal Indicator – FX Replay Guide

In FX Replay, the Williams Fractal Indicator helps you spot high-probability breakout zones and trend reversal patterns by marking swing highs and lows using a five-candle structure. It’s a key tool for price action backtesting, especially when paired with Alligator, VWAP, or volume confirmation.

How to Use It in FX Replay

Add the Indicator:

• Open the Indicators panel.
• Search for “Williams Fractal” and apply it.
• Arrows will appear:
  • Down arrow below candle = bullish fractal.
  • Up arrow above candle = bearish fractal.

Fractal Confirmation

• Always wait for the fifth candle to close—this confirms the fractal pattern.
• Don’t enter early; unconfirmed arrows can disappear if the pattern doesn't finalize.

Trade Entry Logic

Buy Setup:

• Identify a bullish fractal (down arrow).
• Wait for a break and close above the fractal high → enter long.

Sell Setup:

• Identify a bearish fractal (up arrow).
• Wait for a break and close below the fractal low → enter short.

Stop Loss Placement

• Long trade: Stop below fractal swing low.
• Short trade: Stop above fractal swing high.

Profit Targets

• Use a 1.5x–2x risk-reward ratio,
• Or base exits on structure, Fibonacci levels, or volume exhaustion.

Trend Filter + Confirmation

Combine with:

• Williams Alligator: Only take long trades when price is above Alligator and Alligator is “awake.”
• SMMA or TEMA: Confirm directional bias.
• Volume spikes: Confirm strength of breakout.

Backtesting Tips

Tag entries by setup:

• “Fractal Break + Alligator Trend”
• “Fractal Break + VWAP Reclaim”
• “Fractal Trap + Reversal”

Pro Tip

In FX Replay, use fractals to map key structure levels and time entries on breakout confirmation. Ideal for:

• Session-based setups (e.g., NY open).
• Liquidity zone reactions (fractal + sweep = reversal).
• Filtering entries only in trending conditions with Alligator/SMMA.

Use them to:

• Confirm price structure shifts.
• Create entry triggers aligned with your journaling system.
• Spot false breakouts or “trap” setups when price fails to hold after breaking a fractal.