Fractal Analysis


Forex Technical Analysis & Forecast 08.07.2020
Forex Technical Analysis & Forecast 08.07.2020
EURUSD, “Euro vs US Dollar”After breaking 1.1300 to the downside and starting a new correction towards 1.1250, EURUSD has reached the short-term correctional target at 1....
Forex Technical Analysis & Forecast 07.07.2020
Forex Technical Analysis & Forecast 07.07.2020
EURUSD, “Euro vs US Dollar”After breaking 1.1300, EURUSD is consolidating above it. If later the price breaks this range to the downside, the market may start a new corre...
Forex Technical Analysis & Forecast 06.07.2020
Forex Technical Analysis & Forecast 06.07.2020
EURUSD, “Euro vs US Dollar”EURUSD is moving upwards. Possibly, the pair may reach 1.1290 and then start a new correction towards 1.1262. After that, the instrument may fo...
Forex Technical Analysis & Forecast 03.07.2020
Forex Technical Analysis & Forecast 03.07.2020
EURUSD, “Euro vs US Dollar”EURUSD is forming another descending wave. Possibly, today the pair may break 1.1222 and then continue falling with the short-term target at 1....
Forex Technical Analysis & Forecast 02.07.2020
Forex Technical Analysis & Forecast 02.07.2020
EURUSD, “Euro vs US Dollar”After completing the descending structure at 1.1184, EURUSD is growing towards 1.1287, thus forming a new consolidation range around 1.1240. Af...
Forex Technical Analysis & Forecast 01.07.2020
Forex Technical Analysis & Forecast 01.07.2020
EURUSD, “Euro vs US Dollar”After completing another correctional structure at 1.1260, EURUSD is falling towards 1.1215. Possibly, today the pair may reach this level and ...
Forex Technical Analysis & Forecast 30.06.2020
Forex Technical Analysis & Forecast 30.06.2020
EURUSD, “Euro vs US Dollar”After completing the descending structure at 1.1218 along with the correction towards 1.1251, EURUSD is expected to fall and break 1.1210 and t...
Forex Technical Analysis & Forecast 29.06.2020
Forex Technical Analysis & Forecast 29.06.2020
EURUSD, “Euro vs US Dollar”After completing the descending structure at 1.1200, EURUSD is expected to continue the correction and grow to reach 1.1250, at least. Later, t...
Forex Technical Analysis & Forecast 26.06.2020
Forex Technical Analysis & Forecast 26.06.2020
EURUSD, “Euro vs US Dollar”After completing the structure at 1.1192, which may be considered as the third wave, EURUSD has broken its channel to the upside. Possibly, tod...
Forex Technical Analysis & Forecast 25.06.2020
Forex Technical Analysis & Forecast 25.06.2020
EURUSD, “Euro vs US Dollar”EURUSD continues falling with the predicted target at 1.1181. After that, the instrument may correct towards 1.1244 and then may form a new des...

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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