Chaos Fractals Stocks Technical Analysis and Chaos Fractals Stocks Signals

Developed by Bill Williams

A fractal is formed by three stocks 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

Stocks Technical Analysis and Generating Stock Signals

Break Out Trading

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

Buy Stocks Signal

If stocks 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 Stocks Signal Break Out Trading

Sell Stocks Signal

If stocks 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 Stocks Signal Break Out Trading