Chaos Fractals Technical Analysis and Chaos Fractals Forex Signals
Developed by Bill Williams
A fractal is formed by three forex price bars
It is used to detect the bottom 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
Forex Technical Analysis and How to Generate Trading Signals
Break Out Trading
The break out method of using fractals to initiate trades is to take trades based on the direction of a forex price breakout above or below most recent fractal.
Buy Forex Trading Signal
If forex price breaks above the most recent Up Fractal enter long.
Stop losses should be placed below the lowest low of the most recent Down Fractal or second most recent Down Fractal.
Buy Signal Break Out Trading
Sell FX Trading Signal
If forex price breaks below the most recent Down Fractal enter short.
Stop losses should be placed above the highest high of the most recent Up Fractal or second most recent Up Fractal.
Sell Signal Break Out Trading
