AI Fractal Analysis
What It Does
Most indicators react to price. AI Fractal Analysis reads the geometry underneath it.
The tool constructs a hierarchy of offset phase signals anchored to a Weierstrass-series basis — the same mathematical structure that governs self-similar patterns in nature. These signals are sampled at three nested resolutions and combined into two synthetic paths (Scale A and Scale B) that float above and below the candle stream.
When the paths converge, the market is in a neutral transition state. When they diverge, the engine detects a dominance regime shift — either accumulation pressure building from below, or exhaustion spreading from above.
The Mathematics
The engine derives two synthetic phase paths from the following structure:
h(t) = (H + L) / 2 + α · σ(t)
δ = ΨA ↓ ΨB | ΨA ↑ ΨB
τ = f(α, d)
Where Φ(C)[τ] is the structural phase signal derived from close price at resolution τ, α is the Amplitude Scale multiplier, and σ(t) is the rolling standard deviation of price at time t. The resolution τ is a function of both α and the Fractal Scale divisor d.
The Controls
Three parameters give you direct control over what the engine surfaces and at what resolution.
Scales how far the paths float from price. Raise it in high-volatility conditions to prevent the paths from collapsing into the candles. Lower it on tight-ranging markets to see micro-regime shifts.
Divides the internal scale resolution, compressing the signal hierarchy into shorter timeframes. A value of 1 gives you the full multi-month view. Higher values expose nested cycles that are invisible at default resolution.
Controls line thickness of the detected paths. Thicker lines make regime boundaries easier to read at a glance. Thinner lines are better when overlaying other tools or studying precise crossover points.
Reading the Colors
The two path colors represent the two sides of a dominance regime. You can customize both in the panel — these are the defaults:
FRACTAL SCALE A — MagentaWhen Scale A sits below price and is rising, the system reads this as accumulation pressure. Institutions are loading quietly. Price tends to follow upward once the path steepens.
FRACTAL SCALE B — BlueWhen Scale B sits above price and is falling, the system reads this as exhaustion. Buying pressure is depleting. A regime flip — Scale B crossing below — often precedes a sharp move.
How to Read the Signals
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Watch for path separation. When Scale A and Scale B are tightly bound together (narrow gap), the market is in a low-conviction transition. Wait. The next regime is forming.
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Identify the dominant path. The path that holds above price longest defines the current regime. Scale A above = accumulation dominant. Scale B above = exhaustion dominant. Trade in the direction of the dominant path.
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Act on the crossover. When Scale A crosses above Scale B, the regime has flipped to accumulation — a potential long setup. When Scale B crosses above Scale A, exhaustion is taking over — look for short opportunities or exits.
What This Reveals
The key insight is that these paths are not predictive by design — they are structural detectors. They tell you what regime the market is currently in, not where it will go. Combined with your own confluence (volume, support/resistance, session timing), they provide a high-confidence filter that keeps you out of low-probability trades.
The Weierstrass basis ensures that the same regime logic that works on a daily chart will also hold on a 1-hour chart — a property most fixed-period tools do not have.
Quick Tips
- Works best on 1H – 4H – Daily timeframes. On lower timeframes (sub-15m) noise can produce false crossovers.
- Use Amplitude Scale above 5 during news events or earnings — default sensitivity is too tight for spike conditions.
- If both paths are falling together and price is below both, do not trade long. Wait for Scale A to flatten first.
- Combine with the Sniper Engine for entry confirmation: use Fractal Analysis for regime detection, Sniper for the precise entry zone within that regime.
- Color customization is per-session only. If you have a preferred color scheme, note your values — they reset on page reload.