Fractal Analysis


Forex Technical Analysis & Forecast 02.09.2022
Forex Technical Analysis & Forecast 02.09.2022
EURUSD, “Euro vs US Dollar” After completing the descending structure at 0.9910, EURUSD is expected to correct up to 0.9980. Later, the market may resume trading downward...
Forex Technical Analysis & Forecast for September 2022
Forex Technical Analysis & Forecast for September 2022
EURUSD, “Euro vs US Dollar” As we can see in the daily chart, after completing the descending wave at 1.1200, forming a new consolidation range around this level, and bre...
Forex Technical Analysis & Forecast 01.09.2022
Forex Technical Analysis & Forecast 01.09.2022
EURUSD, “Euro vs US Dollar” After completing the ascending structure at 1.0077, EURUSD is being pressured to fall. Possibly, today the pair may reach 0.9983 and then resu...
Forex Technical Analysis & Forecast 31.08.2022
Forex Technical Analysis & Forecast 31.08.2022
EURUSD, “Euro vs US Dollar” After completing the descending structure at 0.9982, EURUSD is growing towards 1.0057 and may later fall to return to 0.9982, thus forming a w...
Forex Technical Analysis & Forecast 30.08.2022
Forex Technical Analysis & Forecast 30.08.2022
EURUSD, “Euro vs US Dollar” After rebounding from 0.9914 and completing a new ascending structure at 1.0000, EURUSD is consolidating below the latter level. Possibly, the...
Forex Technical Analysis & Forecast 29.08.2022
Forex Technical Analysis & Forecast 29.08.2022
EURUSD, “Euro vs US Dollar” After completing the correction at 1.0045, EURUSD is falling; it has already broken 0.9950 and may continue moving towards the target at 0.980...
Forex Technical Analysis & Forecast 26.08.2022
Forex Technical Analysis & Forecast 26.08.2022
EURUSD, “Euro vs US Dollar” Having completed the ascending wave at 1.0025, EURUSD is correcting down to 0.9933 and may later grow to reach 0.9988, thus forming a new cons...
Forex Technical Analysis & Forecast 25.08.2022
Forex Technical Analysis & Forecast 25.08.2022
EURUSD, “Euro vs US Dollar”Having completed the descending wave at 0.9909, EURUSD is growing towards 1.0030. After that, the instrument may start another with the target ...
Forex Technical Analysis & Forecast 24.08.2022
Forex Technical Analysis & Forecast 24.08.2022
EURUSD, “Euro vs US Dollar”Having completed the descending wave at 0.9900, EURUSD is consolidating above this level. Possibly, the pair may grow to reach 1.0055 and then ...
Forex Technical Analysis & Forecast 23.08.2022
Forex Technical Analysis & Forecast 23.08.2022
EURUSD, “Euro vs US Dollar”Having completed the descending wave at 0.9950, EURUSD is consolidating below this level. Possibly, the pair may break the range to the downsid...

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