NinjaTrader comes preloaded with hundreds of native indicators including the Wiseman Fractal which is used to identify areas of reversals. The Wiseman Fractal indicator performs best in trending markets where volatility is low and choppiness is at a minimum.
A fractal is a recurring geometric pattern which echoes ever smaller with each repetition. Often found occurring in nature, technical analysts have also detected these patterns in the markets.
The Wiseman Fractal indicator was created by Bill Williams who is considered to be one of the forefathers of modern trading psychology. Williams used his expertise in psychology along with applied technical analysis and chaos theory in his developing his trading approach.
Watch NinjaTrader’s Wiseman Fractal Indicator in Action:
How Does the Wiseman Fractal Indicator Work?
Easy to identify on your chart, the Wiseman Fractal plots as either upward or downward pointing arrows. Bearish reversals are signaled by upward pointing arrows and bullish reversals are signaled by downward pointing arrows.
The arrows, or fractals, are formed when a certain number of repeated bars align in a distinct manner. This number of repeating bars is configured by the Strength parameter within the Indicators window.
Using Wiseman Fractal with Other Technical Indicators
In the example below, the Wiseman Fractal is used together with the Relative Strength Index (RSI) Indicator plotted in the lower panel. The bullish and bearish reversal arrows serve as potential buy and sell points, while the RSI crosses can serve to confirm or deny the thesis provided by the Wiseman Fractal.
This is just one of countless examples where the Wiseman Fractal can be used in combination with other native NinjaTrader indicators for enhanced technical analysis. As always traders should be aware of the financial risks involved and the possibility of losing money. All indicators have the possibility of producing false signals, and the Wiseman Fractal is no exception.
Add the Wiseman Fractal Indicator to Your NinjaTrader Chart
Adding the Wiseman Fractal indicator to your NinjaTrader chart is easy. Simply right click within your chart, select Indicators, then find Wiseman Fractal from the available list of indicators in the upper left-hand section, add the indicator by double-clicking it, and click OK.
Ready to incorporate the Wiseman Fractal indicator into your analysis of the markets? Download NinjaTrader’s award-winning trading platform for FREE & start building your custom charts today!