Fractal Analysis


Forex Technical Analysis & Forecast 17.05.2021
Forex Technical Analysis & Forecast 17.05.2021
EURUSD, “Euro vs US Dollar”After completing the correctional wave at 1.2148, EURUSD is consolidating below this level. Possibly, the pair may break this range to the down...
Forex Technical Analysis & Forecast 13.05.2021
Forex Technical Analysis & Forecast 13.05.2021
EURUSD, “Euro vs US Dollar”After completing the descending wave at 1.2071 along with the correction towards 1.2151, EURUSD is falling to break the low of the first descen...
Forex Technical Analysis & Forecast 12.05.2021
Forex Technical Analysis & Forecast 12.05.2021
EURUSD, “Euro vs US Dollar”EURUSD is still consolidating; it has expanded this range up to 1.2181 and is currently falling towards 1.2110. Later, the market may start ano...
Forex Technical Analysis & Forecast 11.05.2021
Forex Technical Analysis & Forecast 11.05.2021
EURUSD, “Euro vs US Dollar”EURUSD is falling towards 1.2120 and may later start a new correction to reach 1.2147, thus forming a new consolidation range around the latter...
Forex Technical Analysis & Forecast 10.05.2021
Forex Technical Analysis & Forecast 10.05.2021
EURUSD, “Euro vs US Dollar”After extending the ascending wave towards 1.2147, EURUSD is consolidating around this level. Possibly, the pair may break the range to the dow...
Forex Technical Analysis & Forecast 07.05.2021
Forex Technical Analysis & Forecast 07.05.2021
EURUSD, “Euro vs US Dollar”After breaking 1.2000 to the upside, EURUSD is still correcting. Possibly, the pair may fall to reach 1.2030 and then form one more ascending s...
Forex Technical Analysis & Forecast 06.05.2021
Forex Technical Analysis & Forecast 06.05.2021
EURUSD, “Euro vs US Dollar”After reaching another downside target at 1.1990, EURUSD is forming a new consolidation range around 1.2000. Possibly, the pair may expand the ...
Forex Technical Analysis & Forecast 05.05.2021
Forex Technical Analysis & Forecast 05.05.2021
EURUSD, “Euro vs US Dollar”After reaching its predicted downside target at 1.2000, EURUSD is forming a new consolidation range above this level. Possibly, the pair may ex...
Forex Technical Analysis & Forecast 30.04.2021
Forex Technical Analysis & Forecast 30.04.2021
EURUSD, “Euro vs US Dollar”After breaking its consolidation range to the upside, EURUSD has reached 1.2144; right now, it is correcting to test 1.2100 from above. Later, ...
Forex Technical Analysis & Forecast 28.04.2021
Forex Technical Analysis & Forecast 28.04.2021
EURUSD, “Euro vs US Dollar”EURUSD is forming a new consolidation range below 1.2088. Today, the pair may fall to break 1.2050 and then continue trading downwards with the...

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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