Trading with fractals is extensively used by the large market players and it is the best indicator of the fractals’ reliability. The combinations of fractals have such characteristics as self-similarity, scaling and memory of the «entry conditions», and, therefore, they can be used successfully for making price forecasts.
How to use fractals in Forex
Fractal links of exchange prices and the repeating structures have been confirmed by the results of computer modeling.
The fractal (fr om Latin fractus) means a steady scalable design of irregular shape emerging on any data. The trade fractal in the financial market is the candle pattern formed by at least 5 (or more) candles, max/min of the central candle of which exceeds the extremes of the neighboring candles.
Emergence of fractals means the beginning of a new price pyramid and is considered as a trading signal.
A fractal down (or a signal for position to sell) is reverse pattern made up by five (or more) consecutive candles.
Rules of a sell fractal setup:
1) Place stop above middle candlestick or #3
2) Place enter order at close of candlestick #5
3) Place target order at exit that is at your risk management level and strategy
4) Does sell fractal happen at a high volume and liquidity time? Chart is end of London and start of NY session, so YES.
* On Gbp/Usd noted 15 minute chart, there is a 1:3 risk reward set up. This trade had all five energies: momentum, trend, fractal, liquidity and volume
If any trade set up has all five energies- that is a great trade to take with a high win rate %. good luck and good trading.
How to use fractals in Forex
Fractal links of exchange prices and the repeating structures have been confirmed by the results of computer modeling.
The fractal (fr om Latin fractus) means a steady scalable design of irregular shape emerging on any data. The trade fractal in the financial market is the candle pattern formed by at least 5 (or more) candles, max/min of the central candle of which exceeds the extremes of the neighboring candles.
Emergence of fractals means the beginning of a new price pyramid and is considered as a trading signal.
A fractal down (or a signal for position to sell) is reverse pattern made up by five (or more) consecutive candles.
Rules of a sell fractal setup:
1) Place stop above middle candlestick or #3
2) Place enter order at close of candlestick #5
3) Place target order at exit that is at your risk management level and strategy
4) Does sell fractal happen at a high volume and liquidity time? Chart is end of London and start of NY session, so YES.
* On Gbp/Usd noted 15 minute chart, there is a 1:3 risk reward set up. This trade had all five energies: momentum, trend, fractal, liquidity and volume
If any trade set up has all five energies- that is a great trade to take with a high win rate %. good luck and good trading.