Chaos Fractals Forex Trading Technical Analysis & Chaos Fractals Signals
Developed 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
Forex Trading Technical Analysis & 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 set below the lowest low of the most recent Down Fractal or the second most recent Down Fractal.
Buy Signal Break Out Trading
Sell Signal
If price breaks below the most recent Down Fractal enter short.
Stop loss orders should be set above the highest high of the most recent Up Fractal or second most recent Up Fractal.
Sell Signal Break Out Trading
