Chaos Fractals Technical Analysis & Chaos Fractals Trading Signals
Developed by Bill William
A fractal is formed by 3 price bars
It is used to detect the bottom or the top.
Up Fractal- defined as a middle bar with two lower highs on every side (A- shaped)
Up Fractal
Down Fractal- defined as a middle bar with two higher lows on every side (V-shaped)
Up Fractal
Index Technical Analysis & How to Generate Signals
Breakout Trading
The breakout method of using fractals to initiate trades is to take trade positions based on the direction of a price break out above/below most recent fractal.
Buy Trading Signal
If the market 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 the second most recent Down Fractal.
Buy Trading Signal Break Out Trading
Sell Trade Signal
If the price breaks out below the most recent Down Fractal enter short.
Stop Loss orders should be set above the highest high of most recent Up Fractal or second most recent Up Fractal.
Sell Signal Breakout Trading
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