A fractal is a geometric shape that when sub-divided into smaller parts, each of the smaller parts is similar in shape to the original geometric shape.  Market charts show market price movements through time as bars or candlesticks.  Prices move up and down forming patterns on the charts.  Each price bar represents one or more trades that occured.  The chart time frame defines how many trades take place within each bar.  For example a 5 minute time frame chart says that each bar represents all the trade prices during a 5 minute period.  A 777 tick time frame chart says that each bar represents the prices of 777 trades.

So how are markets fractal in nature? 


Think about a daily bar chart.  Each bar represents the open, high, low, and close (i.e. all the trades) that occured during a single day.  These daily price bars form chart patterns like higher highs and lower lows.  Using the same trade data used to construct a daily bar chart, one can construct a lower time frame chart like a 5-minute chart where each bar represents all trades within a 5 minute period.  These 5 minute price bars form chart patterns that are very similar to price patterns formed on the daily chart.  The only thing that is different is the number of trades in each bar.  The price patterns formed by bar charts are independent of time frame and are fractal.

SR levels are also fractal.  All swing highs and lows on any time frame chart is a potential SR level.  The SRs found on higher time frame charts are usually stronger than those found on lower time frame charts.  All SRs found on higher time frame charts are also found on lower time frame charts.  For example, all SRs found on a daily chart also exist on a 5 minute chart.  Both charts are created by the same trade data, so both contain the same SR price (for example) of the day’s high and low.  However, all the SR levels found on a 5 minute chart cannot be found on a daily chart.  A 5 minute chart has many swing highs and lows used to determine SR levels during any given day that do not appear on a daily chart.  The SR levels that appear on both the daily and the 5 minute charts would be stronger than those that only appear on only the 5 minute chart.