LW Fractals is a free mt4 (Metatrader 4) Forex indicator that can be used for both trade entry and exit.
It can also be used as an additional fractal-based filter that works together with other strategies and systems.
The indicator pops up in the main MT4 window and displays all fractals found on the chart.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “LW_Fractals.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the LW Fractals mt4 indicator in action on the activity chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the LW Fractals indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Fractals
Does the indicator repaint? No.
LW Fractals & XTC MT4 Scalping Strategy
This MT4 scalping strategy combines the LW Fractals Forex Indicator and the XTC Forex Trend Indicator to capture short-term price movements.
The LW Fractals Indicator provides blue arrows for bullish signals and red arrows for bearish signals.
Trades are opened only when the price moves above the blue fractal in an uptrend or below the red fractal in a downtrend.
The XTC Indicator shows the overall trend with a blue histogram for buy and a red histogram for sell.
This strategy is suitable for 1-minute and 5-minute charts and is ideal for fast scalping.
Buy Entry Rules
- Ensure the XTC histogram is blue, indicating a bullish trend.
- Wait for a blue arrow from the LW Fractals Indicator.
- Enter a buy trade only when the price moves above the high of the blue fractal.
- Place a stop loss below the most recent swing low or the blue fractal low.
- Set a take profit target of 5–10 pips or at the next resistance level.
- Close the trade immediately if the XTC histogram turns red or a red fractal signal appears above the price.
Sell Entry Rules
- Ensure the XTC histogram is red, indicating a bearish trend.
- Wait for a red arrow from the LW Fractals Indicator.
- Enter a sell trade only when the price moves below the low of the red fractal.
- Place a stop loss above the most recent swing high or the red fractal high.
- Set a take profit target of 5–10 pips or at the next support level.
- Close the trade immediately if the XTC histogram turns blue or a blue fractal signal appears below the price.
Advantages
- Combines fractal breakout signals with trend confirmation for higher probability trades.
- Quick scalping trades allow capturing small intraday price movements.
- Clear entry and exit rules reduce confusion and improve decision-making.
- Works on multiple currency pairs like EUR/USD, GBP/USD, and AUD/USD.
- Fractal-based entries help identify precise breakout points.
Drawbacks
- Requires constant monitoring due to fast-paced scalping trades.
- False fractal breakouts can occur in choppy or low-volatility markets.
Example Case Studies
Case Study 1: EUR/USD 1-Minute Chart
The XTC histogram was blue, indicating a bullish trend.
A blue arrow from the LW Fractals Indicator appeared.
The price moved above the high of the blue fractal, triggering a buy trade.
A stop loss was set below the fractal low, and a take profit at 8 pips.
The trade reached the target, and the position was closed safely when a red fractal appeared.
Case Study 2: AUD/USD 5-Minute Chart
The XTC histogram was red, indicating a bearish trend.
A red arrow appeared on the LW Fractals Indicator.
The price moved below the low of the red fractal, triggering a sell trade.
Stop loss was set above the fractal high, and take profit at 10 pips.
The trade hit the target quickly, and the position was closed when the XTC histogram turned blue.
Strategy Tips
- Use during high liquidity sessions for tighter spreads and better execution.
- Combine with support and resistance levels to improve breakout accuracy.
- Adjust lot sizes according to account balance and risk tolerance.
- Exit trades immediately on histogram or fractal color change to protect profits.
- Focus on active currency pairs for faster scalping opportunities.
