Chaos Fractals XAUUSD Technical Analysis and Chaos Fractals XAUUSD Signals
Developed by Bill Williams
A fractal is formed by three gold price bars
It is used to detect the bottom or the top.
Up Fractal- defined as a middle bar with two lower highs on each side (A- shaped)
Down Fractal- defined as a middle bar with two higher lows on each side (V-shaped)
XAUUSD Technical Analysis and Generating XAUUSD Signals
Break Out Trading
The break out method of using fractals to initiate trades is to take trades based on the direction of a xauusd price breakout above or below most recent fractal.
Buy XAUUSD Signal
If gold price breaks above the most recent Up Fractal enter long.
Stop losses should be placed below the lowest low of the most recent Down Fractal or second most recent Down Fractal.
Buy XAUUSD Signal Break Out Trading
Sell XAUUSD Signal
If gold price breaks below the most recent Down Fractal enter short.
Stop losses should be placed above the highest high of the most recent Up Fractal or second most recent Up Fractal.
Sell XAUUSD Signal Break Out Trading