Chaos Fractals Commodities Technical Analysis and Chaos Fractals Trading Signals

Created by Bill Williams

A fractal is formed by three commodities trading price bars

It is used to detect the bottoms 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

Commodity Technical Analysis & Generating Trading Signals

Break-Out Trading

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

Buy Trading Signal

If commodities price breaks-out above the most recent Up Fractal enter long.

Stop-losses should be set below the lowest low of the most recent Down Fractal or second most recent Down Fractal.

Buy Commodity Trading Signal Breakout Trading

Sell Trading Signal

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

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

Sell Commodity Trading Signal Breakout Trading