Chaos Fractals MT4 Indicator and Chaos Fractals Signals

Created by Bill Williams

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 2 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

MT4 Indicator and How to Generate Signals

Break-Out Trading

The break out method of using fractals to initiate trades is to take trades based on the direction of a price breakout above or below most recent fractal.

Buy Trading Signal

If 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 the second most recent Down Fractal.

Buy Signal Break-Out Trading

Sell Forex Signal

If price breaks below the most recent Down Fractal enter short.

Stop-loss orders should be set above the highest high of most recent Up Fractal or the second most recent Up Fractal.

Sell Signal Break-Out Trading