// Bill Williams Fractal Template
// Coded By: Matthew Spencer
// If you like this script or use it's code in one of yours, please donate.
// PayPal: [email protected] Bitcoin: 1foxypuyuoNp5n1LNCCCCmjZ4RAXntQ8X

// Define our title and that this script will overlay the candles.
study("Williams Fractals",shorttitle="Fractals", overlay=true)

// Define "n" as the number of periods and keep a minimum value of 2 for error handling.
n = input(title="Periods", defval=2, minval=2, type=integer)

// Williams Fractals are a 5 point lagging indicator that will draw 2 candles behind.
// The purpose of the indicator is to plot points of trend reversals.
// Often these are paired with trailing stop indicators such as Parabolic SAR, Volatility Stop, and SuperTrend.

// Down pointing fractals occur over candles when:
//   High(n-2) < High(n)
//   High(n-1) < High(n)
//   High(n + 1) < High(n)
//   High(n + 2) < High(n)
dnFractal = (high[n-2] < high[n]) and (high[n-1] < high[n]) and (high[n+1] < high[n]) and (high[n+2] < high[n])

// Up pointing fractals occur under candles when:
//   Low(n-2) > Low(n)
//   Low(n-1) > Low(n)
//   Low(n + 1) > Low(n)
//   Low(n + 2) > Low(n)
upFractal = (low[n-2] > low[n]) and (low[n-1] > low[n]) and (low[n+1] > low[n]) and (low[n+2] > low[n])

// Plot the fractals as shapes on the chart.
plotshape(dnFractal, style=shape.arrowdown, location=location.abovebar, offset=-2, color=olive, transp=0) // Down Arrow above candles
plotshape(upFractal, style=shape.arrowup, location=location.belowbar, offset=-2, color=maroon, transp=0)  // Up Arrow below candles