Fractal Analysis


Forex Technical Analysis 02.08.2019 (GBPUSD, USDCHF, BRENT)
Forex Technical Analysis 02.08.2019 (GBPUSD, USDCHF, BRENT)

EURUSD, “Euro vs US Dollar”EURUSD has returned to 1.1080; right now, it is consolidating around this level. 

Forex Technical Analysis 01.08.2019 (EURUSD, GBPUSD, AUDUSD)
Forex Technical Analysis 01.08.2019 (EURUSD, GBPUSD, AUDUSD)

EURUSD, “Euro vs US Dollar”After plummeting and reaching the predicted target at 1.1075, EURUSD has formed another downside continuation patter around 1.1080; right now, ...

Forex Technical Analysis 31.07.2019 (USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 31.07.2019 (USDCHF, USDJPY, AUDUSD)

EURUSD, “Euro vs US Dollar”EURUSD is moving upwards; it has broken the consolidation range to the upside and may continue the correction with the short-term target at 1.1...

Forex Technical Analysis 30.07.2019 (USDCHF, USDJPY, BRENT)
Forex Technical Analysis 30.07.2019 (USDCHF, USDJPY, BRENT)

EURUSD, “Euro vs US Dollar”EURUSD is still consolidating around 1.1130; after reaching the range’s upside border, it is trading to reach 1.1111.

Forex Technical Analysis 29.07.2019 (USDJPY, AUDUSD, GOLD)
Forex Technical Analysis 29.07.2019 (USDJPY, AUDUSD, GOLD)

EURUSD, “Euro vs US Dollar”EURUSD is consolidating around 1.1131. Today, the pair may continue trading downwards to break 1.1110 and then reach the short-term target at 1...

Technical analysis 26.07.2019 (USDCHF, USDJPY, AUDUSD)
Technical analysis 26.07.2019 (USDCHF, USDJPY, AUDUSD)

EURUSDThe pair has reached the goal of the declining matrix at 1.1104 and performed a correction, returning to 1.1184. At the moment the market is trading in another declining wave. ...

Forex Technical Analysis 09.07.2019 (USDCHF, USDJPY, GOLD)
Forex Technical Analysis 09.07.2019 (USDCHF, USDJPY, GOLD)

EURUSD, “Euro vs US Dollar”EURUSD is consolidating next to the lows of the descending wave. Possibly, today the pair may reach 1.1199, grow towards 1.1248, and then form ...

Forex Technical Analysis 08.07.2019 (USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 08.07.2019 (USDCHF, USDJPY, AUDUSD)

EURUSD, “Euro vs US Dollar”EURUSD has reached the predicted downside target; right now, it is consolidating around 1.1222. 

Forex Technical Analysis 05.07.2019 (USDJPY, AUDUSD, GOLD)
Forex Technical Analysis 05.07.2019 (USDJPY, AUDUSD, GOLD)

EURUSD, “Euro vs US Dollar”EURUSD is still consolidating around 1.1281. Possibly, today the pair may fall with the short-term target at 1.1242 and then start another grow...

Forex Technical Analysis 04.07.2019 (GBPUSD, USDJPY, BRENT)
Forex Technical Analysis 04.07.2019 (GBPUSD, USDJPY, BRENT)

EURUSD, “Euro vs US Dollar”EURUSD is forming the fifth descending structure. Possibly, today the pair may reach 1.1251 and then grow towards 1.1260. 


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.

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree