NinjaTrader Fractal Breakout Indicator uses fractals to analyze price fluctuations. The main advantage of fractals over other technical analysis tools is that they display not only local highs and lows on the chart, but also allow you to determine important support and resistance levels, which helps provide additional context for price analysis.
A fractal is a cluster of several bars, where surrounding bars form a structure around a central high or low point, which represents the top or bottom of the fractal. Thus, there are upper fractals and lower fractals.
Upper fractals (peaks) are marked by triangles directed upward and located at the level of the maximum price of the bar. Lower fractals (troughs) are marked by triangles pointing down and located at the level of the minimum price of the bar. Fractals indicate the minimums and maximums reached by the market over a certain period, visually highlighting them with directional indicators (triangles).
Fractal structures are commonly used in technical analysis to identify local price extremes. These levels often act as reference zones where liquidity may concentrate, making them relevant for breakout analysis.
After detecting the next fractal, the indicator monitors its level. If the price breaks the level of the last upper fractal from the bottom up, this place is marked on the chart as an upward breakout – indicated by a green visual marker (arrow) pointing upward and located below the bar on which the breakout was detected. The price crossing the level of the last lower fractal from top to bottom, that is, a downward breakout, is indicated by a red visual marker (arrow) pointing down and located above the bar.
To clearly associate each breakout with its corresponding fractal level, the indicator draws a horizontal line from the point of the breakout to the top of the corresponding fractal. The levels of upper fractals (pierced from bottom to top) are green, the levels of lower fractals (pierced from top to bottom) are colored red.
If you enable filtering by the moving average in the indicator settings, this average will be displayed on the chart. In this case, the chart will display breakouts only in the direction based on price position relative to the moving average – that is, the position of the price relative to the average. Upward breakouts are only shown on the chart if they occur above the average, and downward breakouts are only displayed if they occur below the average.
To ensure important breakout events are not overlooked, the indicator provides settings for various types of alerts.
Limitations of Fractal-Based Analysis
Fractal-based analysis reflects historical price structure and does not predict future price movement. Breakout conditions identified by the indicator should be interpreted within a broader market context, including trend structure, volatility, and surrounding price levels.
The most common market theory explains price changes as the interaction of two opposing forces: buyers and sellers. Buyers, providing demand, contribute to higher prices. Sellers, on the contrary, by making offers, help reduce prices. Due to the inertia of market processes, these forces cannot reach equilibrium, as a result of which the price makes oscillatory movements. If the influence of one of the forces significantly exceeds the influence, the second force retreats, and the price makes a strong movement (breakout) with a transition to another price level. Further fluctuations are made within the limits of new price levels, until another breakout occurs and the price makes another significant change.
Fractals highlight structural levels that, when breached, may reflect a shift in local market momentum. Thus, a price breakout of the upper fractal level marks a potential upward breakout condition. Conversely, a price breakout of the lower fractal level marks a potential downward breakout condition.
When a breakout is detected, provides three types of notifications: a text message window, an audio alert, or an email. Moreover, notification can be made both on formed and on emerging bars. When working on formed bars, the trader is notified of a level breakout only after the bar closes, which is a more reliable way to identify a breakout condition. Tracking breakouts on emerging bars allows you to identify a breakout condition in real-time, providing immediate visual feedback on current market dynamics.
The indicator has the following parameters:
Alerts – setting up various types of alerts.
Fractal – setting fractal parameters.
Moving Average – settings for moving average parameters – used as a confirmation filter.
Bar signal – displays the visual marker on a formed bar or the current one.
Use Trend MA Filter – on/off using a moving average as a confirmation filter.
We can customize this indicator to your needs — adding functions, modifying logic, or integrating it with other tools for your workflow.
We also convert indicators into Automated Trading Strategies with advanced functions (trailing stops, risk management, filters) tailored to your trading style strictly according to your specifications.
Request a free consultation to discuss the technical scope and timeline of your project.
We are committed to the ongoing development and refinement of our indicators. If you’ve spotted a bug, feel that something essential is missing, or have ideas that could make the indicator even better, just send us a message. Your feedback helps us improve and deliver tools that truly meet traders’ needs.
The indicator provides a set of exposed analytical plot outputs designed for structured integration with third-party strategy builders and automation tools such as BloodHound and BlackBird (SharkIndicators), as well as other algorithmic trading environments.
| Analytical Plot Name | Output Values | Description |
| Long | > 0 | Bullish directional detection condition. |
| LongFractal | Value | |
| Short | > 0 | Bearish directional detection condition. |
| ShortFractal | Value | |
| MA | Value | |
| UpFractal | Value | |
| DownFractal | Value |
Plot output names and descriptions are technical identifiers intended solely for software integration purposes and do not constitute trading advice, signals, or recommendations.
Nordman Algorithms is a trade name of Nordman Algorithms OÜ (Reg. No. 14435535), registered in Tallinn, Estonia.
Software Nature & User Responsibility — Nordman Algorithms provides algorithmic software tools for technical analysis. Nordman Algorithms is not a financial advisor and is not liable for any losses. All trades conducted based on the software’s output are executed at the user’s sole discretion and risk.
Visual Markers & Signal Disclosure — This software may display visual markers (such as arrows, dots, or alerts) when predefined mathematical conditions are met. These markers are provided for educational and analytical purposes only, must not be interpreted as financial guidance, and do not constitute a recommendation to buy, sell, or hold any financial instrument. Users must independently validate all visual cues within their own trading methodology.
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