Chaos Fractals Stock Indices Technical Analysis and Chaos Fractals Stock Indices Signals
Developed by Bill Williams
A fractal is formed by three stock index 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)
Down Fractal- defined as a middle bar with two higher lows on each side (V-shaped)
Stock Indices Technical Analysis and Generating Stock Indices Signals
Break Out Trading
The break out method of using fractals to initiate trades is to take trades based on the direction of a stock indices price breakout above or below most recent fractal.
Buy Stock Indices Signal
If stock index 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 second most recent Down Fractal.
Buy Stock Indices Signal Break Out Trading
Sell Stock Indices Signal
If stock index price breaks below the most recent Down Fractal enter short.
Stop losses should be placed above the highest high of the most recent Up Fractal or second most recent Up Fractal.
Sell Stock Indices Signal Break Out Trading