Chaos Fractals Technical Analysis and Chaos Fractals Signals
Created by Bill William
A fractal is formed by three price bars
It's 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 2 higher lows on each side (V-shaped)
Up Fractal
Technical Analysis & Generating Signals
Breakout Trading
The break out method of using fractals to initiate trade transactions is to take trade transactions based on the direction of a price breakout above or below most recent fractal.
Buy Signal
If 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 the second most recent Down Fractal.
Buy Signal Breakout Trading
Sell Signal
If price breaks out below the most recent Down Fractal enter short.
Stop loss orders should be placed above the highest high of most recent Up Fractal or second most recent Up Fractal.
Sell Signal Breakout Trading
