Fractal Analysis


Forex Technical Analysis 11.12.2019 (USDJPY, AUDUSD, GOLD)
Forex Technical Analysis 11.12.2019 (USDJPY, AUDUSD, GOLD)
EURUSD, “Euro vs US Dollar”EURUSD has completed the ascending wave at 1.1097; right now, it is consolidating at the top. Possibly, the pair may expand this range downward...
Forex Technical Analysis 10.12.2019 (EURUSD, GBPUSD, USDCHF)
Forex Technical Analysis 10.12.2019 (EURUSD, GBPUSD, USDCHF)
EURUSD, “Euro vs US Dollar”is still consolidating around 1.1066. Possibly, today the pair may expand this range upwards and downwards, 1.1070 and 1.1062 respectively. 
Forex Technical Analysis 29.11.2019 (USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 29.11.2019 (USDCHF, USDJPY, AUDUSD)
EURUSD, “Euro vs US Dollar”EURUSD is still consolidating around 1.1000. Possibly, today the pair may expand the range towards 1.1018 and then return to 1.1000. 
Forex Technical Analysis 28.11.2019 (USDJPY, AUDUSD, GOLD)
Forex Technical Analysis 28.11.2019 (USDJPY, AUDUSD, GOLD)
EURUSD, “Euro vs US Dollar”After breaking 1.1077 to the downside and reaching 1.0992, EURUSD has completed the correction to return to 1.1080.
Forex Technical Analysis 27.11.2019 USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 27.11.2019 USDCHF, USDJPY, AUDUSD)
EURUSD, “Euro vs US Dollar”After finishing the correction at 1.1024 and then falling towards 1.1014, EURUSD is consolidating inside Triangle pattern. 
Forex Technical Analysis 26.11.2019 (USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 26.11.2019 (USDCHF, USDJPY, AUDUSD)
EURUSD, “Euro vs US Dollar”After reaching another downside target at 1.1004, EURUSD is consolidating below 1.1014. Possibly, the pair may break this level to the upside a...
Forex Technical Analysis 25.11.2019 (EURUSD, GBPUSD, USDCHF)
Forex Technical Analysis 25.11.2019 (EURUSD, GBPUSD, USDCHF)
EURUSD, “Euro vs US Dollar”EURUSD has reached the short-term target of another descending impulse at 1.1015; right now, it is consolidating around 1.1020. 
Forex Technical Analysis 22.11.2019 (USDJPY, AUDUSD, BTCUSD)
Forex Technical Analysis 22.11.2019 (USDJPY, AUDUSD, BTCUSD)
EURUSD, “Euro vs US Dollar”EURUSD is forming one more descending impulse towards 1.1047. After that, the instrument may start a new growth to reach 1.1072, thus forming a...
Forex Technical Analysis 21.11.2019 (USDJPY, AUDUSD, GOLD)
Forex Technical Analysis 21.11.2019 (USDJPY, AUDUSD, GOLD)
EURUSD, “Euro vs US Dollar”After finishing the second descending impulse towards 1.1050, EURUSD has completed the correction at 1.1077. 
Forex Technical Analysis 20.11.2019 (EURUSD, GBPUSD, USDCHF)
Forex Technical Analysis 20.11.2019 (EURUSD, GBPUSD, USDCHF)
EURUSD, “Euro vs US Dollar”After reaching the closest correctional target at 1.1077, EURUSD is moving downwards to reach 1.1066. 

Advantages of 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.

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.

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