Fractal Analysis


Forex Technical Analysis & Forecast 01.04.2020
Forex Technical Analysis & Forecast 01.04.2020
EURUSD, “Euro vs US Dollar”EURUSD has almost completed the correction by finishing the descending wave towards 1.0926; right now, it is forming the second ascending impul...
Forex Technical Analysis & Forecast 31.03.2020
Forex Technical Analysis & Forecast 31.03.2020
EURUSD, “Euro vs US Dollar”After forming a correctional continuation pattern at 1.1053 and breaking it downwards, EURUSD is trading to reach the short-term target at 1.09...
Forex Technical Analysis & Forecast 30.03.2020
Forex Technical Analysis & Forecast 30.03.2020
EURUSD, “Euro vs US Dollar”After finishing the ascending structure at 1.1146 and almost completing the third ascending wave, EURUSD is trading downwards. 
Forex Technical Analysis & Forecast 27.03.2020
Forex Technical Analysis & Forecast 27.03.2020
EURUSD, “Euro vs US Dollar”After completing the ascending structure at 1.0935 and forming a new consolidation range as an upside continuation pattern, EURUSD has broken i...
Forex Technical Analysis & Forecast 24.03.2020
Forex Technical Analysis & Forecast 24.03.2020
EURUSD, “Euro vs US Dollar”After forming the first ascending impulse towards 1.0825 and completing the correction at 1.0720, EURUSD has returned to 1.0825; right now, it ...
Forex Technical Analysis & Forecast 23.03.2020
Forex Technical Analysis & Forecast 23.03.2020
EURUSD, “Euro vs US Dollar”EURUSD is forming a wide consolidation range around 1.0720. Possibly, the pair may reach form one more ascending structure to reach 1.0797 and ...
Forex Technical Analysis & Forecast 20.03.2020
Forex Technical Analysis & Forecast 20.03.2020
EURUSD, “Euro vs US Dollar”After breaking 1.0810 downwards and then forming a downside continuation pattern there, EURUSD has reached the short-term target at 1.0655; rig...
Forex Technical Analysis & Forecast 19.03.2020
Forex Technical Analysis & Forecast 19.03.2020
EURUSD, “Euro vs US Dollar”After breaking 1.0960 downwards and then reaching 1.0801, EURUSD has completed the ascending impulse at 1.0980 along with the descending struct...
Forex Technical Analysis & Forecast 18.03.2020
Forex Technical Analysis & Forecast 18.03.2020
EURUSD, “Euro vs US Dollar”After forming the second descending impulse at 1.0954, EURUSD is correcting to reach 1.1044. After that, the instrument may resume falling to b...
Forex Technical Analysis 17.03.2020 (EURUSD, GBPUSD, USDCHF)
Forex Technical Analysis 17.03.2020 (EURUSD, GBPUSD, USDCHF)
EURUSD, “Euro vs US Dollar”After forming the ascending structure towards the upside border of the consolidation range at 1.1230, EURUSD has finished another descending im...

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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