Chaos Fractals Technical Analysis and Chaos Fractals Signals
Created and Developed 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 and Generating Signals
Break Out Trading
The break out method of using fractals to initiate trade positions is to take trades based on the direction of a price break-out above/below most recent fractal.
Buy Signal
If price breaks above the most recent Up Fractal enter long.
Stop Loss should be set below the lowest low of the most recent Down Fractal or the second most recent Down Fractal.
Buy Trading Signal Breakout Trading
Sell Trade Signal
If the 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
Learn More Topics and Tutorials:
- Buy Limit Order and Sell Limit Order
- How Can I Use Trend Trigger Factor TTF in Forex?
- Creating a Trading FX System To Trade Currencies with
- Index Trade Strategies AEX
- Gold Buy Long Trades and XAU USD Sell Short Trades in XAU USD Charts
