Fractal Analysis


Forex Technical Analysis 22.10.2019 (USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 22.10.2019 (USDCHF, USDJPY, AUDUSD)
EURUSD, “Euro vs US Dollar”EURUSD is forming the first descending impulse. Possibly, today the pair may reach 1.1122 and then grow to return to 1.1155, thus forming a new...
Forex Technical Analysis 21.10.2019 (USDJPY, AUDUSD, BRENT)
Forex Technical Analysis 21.10.2019 (USDJPY, AUDUSD, BRENT)
EURUSD, “Euro vs US Dollar”After breaking 1.1140, EURUSD has expanded the range towards 1.1170. Possibly, today the pair may fall to return to 1.1140 and then grow to rea...
Forex Technical Analysis 04.10.2019 (USDCHF, USDJPY, CHFUSD)
Forex Technical Analysis 04.10.2019 (USDCHF, USDJPY, CHFUSD)
EURUSD, “Euro vs US Dollar”EURUSD has finished the ascending wave 1.0997; right now, it is forming the first descending impulse with the predicted target at 1.0957. 
Forex Technical Analysis 03.10.2019 (USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 03.10.2019 (USDCHF, USDJPY, AUDUSD)
EURUSD, “Euro vs US Dollar”EURUSD continues the correction; right now, it is forming the second ascending impulse. 
Forex Technical Analysis 02.10.2019 (EURUSD, USDCAD, GOLD)
Forex Technical Analysis 02.10.2019 (EURUSD, USDCAD, GOLD)
EURUSD, “Euro vs US Dollar”After finishing the correction at 1.0940, EURUSD is consolidating near the highs. Possibly, the pair may expand the range towards 1.0943 and th...
Forex Technical Analysis 01.10.2019 (EURUSD, AUDUSD, USDCAD)
Forex Technical Analysis 01.10.2019 (EURUSD, AUDUSD, USDCAD)
EURUSD, “Euro vs US Dollar”After finishing another descending wave at 1.0915, EURUSD has completed the downside continuation pattern to reach 1.0885. 
Forex Technical Analysis 30.09.2019 (USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 30.09.2019 (USDCHF, USDJPY, AUDUSD)
EURUSD, “Euro vs US Dollar”After breaking 1.0926 upwards, EURUSD has completed the ascending correction at 1.0955. 
Forex Technical Analysis 27.09.2019 (EURUSD, USDCHF, USDJPY)
Forex Technical Analysis 27.09.2019 (EURUSD, USDCHF, USDJPY)
EURUSD, “Euro vs US Dollar”After reaching the downside target at 1.0920 and completing the correction towards 1.0966, EURUSD started another decline with the target at 1....
Forex Technical Analysis 26.09.2019 (USDCHF, USDJPY, BTCUSD)
Forex Technical Analysis 26.09.2019 (USDCHF, USDJPY, BTCUSD)
EURUSD, “Euro vs US Dollar”EURUSD has reached another downside target to extend the wave towards 1.0937. Today, the pair may be correcting upwards to reach 1.0975. 
Forex Technical Analysis 25.09.2019 (USDJPY, AUDUSD, USDCAD)
Forex Technical Analysis 25.09.2019 (USDJPY, AUDUSD, USDCAD)
EURUSD, “Euro vs US Dollar”EURUSD has completed the correction at 1.1020; right now, it is moving downwards. Possibly, the pair may reach 1.0982 and then form one more as...

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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