Chaos Fractals Commodity Trading Technical Analysis & Chaos Fractals Trading Signals

Developed by Bill Williams

A fractal is formed by three commodity price bars

It is used to detect the bottoms or the top.

Up Fractal- defined as a middle bar with two lower highs on each side (A- shaped)

Up Fractal

Down Fractal- defined as a middle bar with 2 higher lows on each side (V-shaped)

Up Fractal

Commodity Trading Technical Analysis & How to Generate Signals

Breakout Trading

The break out method of using fractals to initiate trades is to take trades based on the direction of a commodity price breakout above or below most recent fractal.

Buy Trading Signal

If commodity price breaks above the most recent Up Fractal enter long.

Stop-losses should be set below the lowest low of the most recent Down Fractal or second most recent Down Fractal.

Buy Commodity Signal Breakout Trading

Sell Trading Signal

If commodity price breaks below the most recent Down Fractal enter short.

Stoploss orders should be set above the highest high of the most recent Up Fractal or second most recent Up Fractal.

Sell Commodity Signal Breakout Trading