Chaos Fractals Oil Technical Analysis and Chaos Fractals Trading Signals

Created by Bill Williams

A fractal is formed by three crude oil price bars

It is used to detect the bottoms 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 two higher lows on each side (V-shaped)

Up Fractal

Oil Technical Analysis & 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 oil price breakout above or below most recent fractal.

Buy Trading Signal

If crude oil 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 second most recent Down Fractal.

Buy Oil Trading Signal Break-Out Trading

Sell Trading Signal

If crude oil price breaks below the most recent Down Fractal enter short.

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

Sell Oil Trading Signal Break-Out Trading