Chaos Fractals Technical Analysis and Chaos Fractals Signals
Created by Bill William
A fractal is formed by three 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)
Up Fractal
Down Fractal- defined as a middle bar with two higher lows on each side (V shaped)
Up Fractal
Technical Analysis & Generating Signals
Break Out Trading
The break out method of using fractals to initiate trade transactions is to take trades based on the direction of a price break-out above or below most recent fractal.
Buy Trade Signal
If price breaks above the recent most Up Fractal enter long.
Stoploss should be set below the lowest low of the recent most Down Fractal or the second most recent Down Fractal.
Buy Signal Breakout Trading
Sell Trade Signal
If price breaks out below the recent most Down Fractal enter short.
Stoploss orders should be placed above the highest high of most recent Up Fractal or second most recent Up Fractal.
Sell Signal Breakout Trading
Learn More Topics & Tutorials:
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