Chaos Fractals Technical Analysis & Chaos Fractals Trading Signals

Developed by Bill Williams

A fractal is formed by three price bars

It is used to detect the bottoms 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

Energy Technical Analysis & How to Generate Trade Signals

Break Out Trading

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

Buy Trading Signal

If energies 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 second most recent Down Fractal.

Buy Signal Breakout Trading

Sell Trading Signal

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

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

Sell Signal Breakout Trading