Chaos Fractals Technical Analysis and Chaos Fractals Signals
Conceived and Constructed by Bill William
A fractal is created by three price bars
It is used to detect the bottom or top.
Up Fractal- defined as a middle bar with two lower highs on each side (A- shaped)
Up Fractal
Down Fractal - represents a middle bar with two higher lows on each side (V-shaped).
Up Fractal
Technical Analysis and Generating Signals
Break Out Trading
The method of using fractals to start trades involves making trades based on whether the price goes above or below the most recent fractal.
Buy Signal
If the price goes higher than the most recent Up Fractal, buy.
The Stop Loss order ought to be positioned beneath the lowest price reached by the most recent Down Fractal or the one immediately preceding it.
Buy Signal in Breakout Trading Strategies
Sell Trade Signal
Enter short if the price breaks out below the most recent Down Fractal.
Stop Loss orders ought to be situated above the highest peak recorded by the most recent Up Fractal or the second most recent Up Fractal.
The Sell Signal Originating from a Break-out Trade
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