Chaos Fractals XAUUSD Technical Analysis & Chaos Fractals XAUUSD Signals

Developed by Bill Williams

A fractal is formed by three gold trading 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

Gold Technical Analysis & How to Generate Trading Signals

Breakout Trading

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

Buy XAUUSD Signal

If gold trading 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 XAUUSD Signal Break Out Trading

Sell Gold Signal

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

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

Sell XAUUSD Signal Break Out Trading