Fractal Analysis

Fractal forex analysis is proved to be quite helpful in terms of foretelling the growth and the downfall of the price rates. Once you understand how it works, it will no longer cause difficulties – on the contrary, it will make your work easier and more effective. The correct use of the fractal analysis can make market behavior and the pricing a little more foreseeable.


USD/CHF Technical Analysis & Daily Chart Latest Analytics Our Advantages
USD/CHF Technical Analysis & Daily Chart Latest Analytics Our Advantages

General AnalysisAfter a significant downward movement from 0.9950 to 0.9580 at the moment the Swiss franc has stopped its decline and is now moving sideways without a high volatility...

GBP/USD: technical analysis
GBP/USD: technical analysis

The price has been rising since a “Triple Bottom” was formed at the last low. The local downward trend has been broken, so it’s likely to see a rise towards a resis...

Technical analysis of EUR/JPY for October 21 2014 2014-10-21
Technical analysis of EUR/JPY for October 21 2014 2014-10-21

General overview for 21/10/2014 11:10 CET Quiet trading conditions have caught the current market in a range zone between the levels of 136.26 - 137.00, but the more expected breakou...

Technical analysis of USD/CAD for October 15, 2014 2014-10-15
Technical analysis of USD/CAD for October 15, 2014 2014-10-15

General overview for 15/10/2014 12:20 CET The wave progression is developing as anticipated and still higher highs are being made. It looks like the wave (3) might have been done and...

USD/CAD  H1 analysis for August 20, 2013 2013-08-20
USD/CAD H1 analysis for August 20, 2013 2013-08-20

General overview for 20/08/2013 08:30 CET Brown trend line has been broken and the impulsive bearish count has been invalidated. Currently, desplite making new local intraday high, p...

USD/CHF Technical Analysis for April 6, 2012 2012-04-06
USD/CHF Technical Analysis for April 6, 2012 2012-04-06

Forecast: Show full picture Overview: USD/CHF:

The GBP/USD wave analysis for January 7, 2011 2011-01-07
The GBP/USD wave analysis for January 7, 2011 2011-01-07

Show full picture The GBP/USD currency pair is slowly declining further and probably forming the first waves of a more continuous 3rd wave of the current section of the whole downtre...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-09-15
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-09-15

Dear traders, For EUR/JPY pair we observed an impulsive upward movement. Here we are following the ascendant structure from September 8 as middle-term initial conditions for uprisin...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-09-14
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-09-14

Dear traders, For EUR/JPY pair key levels remained unchanged. Here we are still waiting for development of the ascendant structure from September 8. The price of GBP/JPY pair is clo...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-08-19
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-08-19

Dear traders, For EUR/JPY and GBP/JPY, the key levels remained unchanged. We do not see evident initial conditions for the ascendant tendency development. Forecast for August 19: ...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-08-13
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-08-13

Dear traders, For EUR/JPY and GBP/JPY, the key levels remained unchanged. We do not see evident initial conditions for the ascendant correction development here. Forecast for Augu...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-08-10
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-08-10

Dear traders, For the EUR/JPY, the main targets remained unchanged and here the downward structure from July 28 is considered as initial points. For GBP/JPY, despite that the upward...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-08-03
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-08-03

Dear traders, For the EUR/JPY, we do not observe any evident initial conditions for a downward motion development. Also, we continue following the local upward structure from July 3...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-07-27
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-07-27

Dear traders, For the EUR/JPY and the GBP/JPY pairs, the key levels remained unchanged. I remind you that as a major tendency is considered an upward. A decreasing motion is taken i...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations  2010-07-21
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-07-21

Dear traders, For the EUR/JPY and the GBP/JPY pairs, key levels remained unchanged and the situation clearance is expected here. In general, as a major tendency is considered downwa...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations  2010-07-15
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-07-15

Dear traders, For the EUR/JPY pair, there are some preconditions for downward correction extending, though the major tendency remains uprising. For the GBP/JPY pair, we again consid...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-07-14
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-07-14

Dear traders, As for the EUR/JPY pair, we continue to observe development of the uprising cycle from July 1. For now, we do not see any initial conditions for a decreasing tendency;...

Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-07-08
Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-07-08

Dear traders, As for the EUR/JPY pair, we continue to observe development of the uprising structure from July 1, also we do not see any initial conditions for a decreasing tendency...

Fractal analysis of EUR/USD. Trading recommendations 2010-06-17
Fractal analysis of EUR/USD. Trading recommendations 2010-06-17

For EUR/USD, we can see formation of ill-defined initial conditions for correction; however, the situation with the franc remains unchanged. Forecast for June 17: Show full pictu...

Fractal analysis of EUR/USD. Trading recommendations 2010-06-10
Fractal analysis of EUR/USD. Trading recommendations 2010-06-10

For now, we observe the evident initial conditions on EUR/USD for development of a stable upward tendency in H1 scale. Forecast for June 10: Show full picture Trading recommend...


The Essence of the Fractal Market Analysis

A Fractal is one of five indicators of Bill Williams’ trading system, which allows determining the bottom or the top. Fractal Technical Indicator is a set of at least five sequent bars. According to Williams, an "up fractal" or the “buy fractal” is defined as a middle bar with two lower highs on each side of it. A "down fractal", also known as the “sell fractal”, is a middle bar with two higher lows on each side of it. Fractals are valid up to the point that they are triggered, or there's a new fractal that appears in the same direction (in this case the previous signal has to be ignored and the pending order has to be deleted).

Using the fractal analysis

 As in everything we do, practice is the crucial part of the success. Therefore, it is advisable to learn how to generate small models. The second step would be the careful analysis of the external factors. Try to model a real market situation, predicting the further development. If if works, feel free to apply your skills to real trading.

For the successful fractal technical analysis remember the following:

  • It is wiser not to take trades before the first fractal is triggered
  • If the buy signal is above the Red Balance Line (the Alligator’s Teeth), place a buy stop one tick above the high of the up fractal.
  • If the sell signal is below the Red Balance Line, we would place a sell stop one tick below the low of the fractal sell signal.
  • Protective stops should be placed beneath the lowest low of the most recent Down Fractal

Fractals do not have predicative value for the price as they only follow it. Traders mostly use fractal analysis with other indicators to confirm that reversals have indeed occurred.