Ok, before I start asking more questions concerning fractal indictor. I am going to try and answer my own questions.
How does fractal work? Its looking at previous data and taking into consideration its next movement.
Is it based on price calculations? Calculating its MA period.
Just look into the code of eg. this indicator?
Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2012.08.24 09:37
CFB tells you how long the market has been in a quality trend. This value can be used to adjust the period length of other indicators, especially stochastic bands. In order to quantify the overall duration of a market's trend, we replaced classical cycle analysis methods (FFT, MEM, MESA) with a form of analysis that works even when no cycles exist. We accomplished this by examining a time series for specific fractal patterns of any size. We then gather all the patterns found and combine them into one overall index, CFB (Composite Fractal Behavior) Index.
Composite Fractal Behavior and its aplications - good thread with the following indicators:
It is very advanced multi timeframe fractal indicator with alerts. There are some good features such as how to show the arrows when showJustOneArrow parameter is set to true :showArrowType parameter :0 -> draw arrow just on the first bar of the target time frame1 -> draw arrow just on the last bar of the target time frame2 -> draw arrow when the high is equal to high fractal or low is equal for low fractalAdditional option is to show the arrow just on the first bar of the target time frame fractal, or to repeat it on every bar belonging to that time frame bar.