The process of manually drawing out trend lines is too subjective. Way too subjective.
Without using a systematic drawing method, our subconscious mind will tell us to draw the trendlines pointing to the direction that we want the price to move towards.
Using a fractal system will force the trader to wait for some time before deeming a pivot point as an HL/LH/HH/LL. There's only one parameter for fractals, and it's "period", the longer this is set, the longer must the trader wait. Only when a recent fractal has been forming should a trader be allowed to draw a trend line connecting the recent highs/low fractals.
The "Auto Trendline Indicator (based on fractals)" was published in mid-2022. It was built to detect fractals that exist at the timeframe that the chart is set at.
The existing version is fine, and it will stay that way, with the capability to only detect current-timeframe. It's perfectly fine to use current-timeframe.
It can be argued that using multi-timeframe fractals is unnecessary. If you want a higher degree of confirmation, you can increase the fractal period. However, this comes at the cost of adding more lag. When you accept more lag, there will be fewer signals in the current timeframe, and there will be fewer signals in terms of frequency as measured by the number of time bars.
Lag is good. Lag caused by fractals clarifies how many bars a trader is willing to wait after the formation of a pivot high/low before jumping into a trade.
Because it gives a better sense of security. Consider the following characteristics:
- A trader wants to draw trendlines strictly on the weekly timeframe
- This trader also wants to zoom into the chart to see the patterns in timeframes lower than weekly (suppose it's daily)
- This trader might consider setting up the chart according to the next screenshot.
Here's NQ on the daily chart, the trendlines that you see on the chart are based on two-period fractals confirmed by the weekly chart.
These blue lines are fixed to a higher timeframe at 1W. A two-period fact on Weekly will be equivalent to 10 daily bars (because there are 5 trading days per week for NQ).
If zooming closer, say into 4h, 1h, 15m, and so on, the pivot highs and lows that you see will stay on the chart.
- Trend following setup: Buy/sell when signals occur when the close is above/below the moving average
- Contrarian setup: Buy/sell when signals occur when the close is below/above the moving average
- Market on close (for intraday, when RTH session is defined in settings)