Williams Fractals Ultimate (Donchian Adjusted)

Williams Fractals Ultimate (Donchian Adjusted)

Understanding Williams Fractals
Williams Fractals are a simple yet powerful tool used to identify potential turning points in the market. They highlight local highs (up fractals) and local lows (down fractals) based on a set period.

• An up fractal appears when a price peak is higher than the surrounding prices.
  
• A down fractal appears when a price low is lower than the surrounding prices.
  

Fractals help traders spot support and resistance levels, potential trend reversals, and price breakout zones.

Why Adjust Fractals with the Donchian Channel?
The standard Williams Fractals method identifies local highs and lows without considering broader market context. This script enhances fractal accuracy by integrating the Donchian Channel, which tracks the highest highs and lowest lows over a set period.


- The Donchian Baseline is calculated as the average of the highest high and lowest low over a selected period.

- Fractals are filtered based on this baseline:

• Up Fractals are only shown if they are above the Donchian baseline.
  
• Down Fractals are only shown if they are below the Donchian baseline.
  

This filtering method removes weak signals and ensures that only relevant fractals aligned with market structure are displayed.

Key Features of the Script

• Customizable Fractal & Donchian Periods – Allows traders to fine-tune fractal sensitivity.
  
• Donchian-Based Filtering – Reduces noise and highlights meaningful fractals.
  
• Fractal ZigZag Line (Optional) – Helps visualize price swings more clearly.
  

Why Is This So Effective?

• Stronger trend signals – Filtering with the Donchian baseline eliminates unreliable fractals.
  
• Clearer price action – The optional ZigZag line visually connects significant highs and lows.
  
• Easy trend identification – Helps traders confirm breakout zones and key price levels.
  

This script is a technical analysis tool and does not guarantee profitable trades. Always combine it with other indicators and risk management strategies before making trading decisions.