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
