Fractal Analysis


Forex Technical Analysis 17.01.2020 (USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 17.01.2020 (USDCHF, USDJPY, AUDUSD)
EURUSD, “Euro vs US Dollar”EURUSD has reached 1.1171; right now, it is forming a new descending wave towards 1.1113. Later, the market may start another growth with the t...
Forex Technical Analysis 16.01.2020 (GOLD, BRENT, BTCUSD)
Forex Technical Analysis 16.01.2020 (GOLD, BRENT, BTCUSD)
EURUSD, “Euro vs US Dollar”EURUSD has reached 1.1160 while forming the third ascending wave. Today, the pair may correct to test 1.1140 from above and then form one more ...
Forex Technical Analysis 15.01.2020 (USDCHF, GOLD, BRENT)
Forex Technical Analysis 15.01.2020 (USDCHF, GOLD, BRENT)
EURUSD, “Euro vs US Dollar”After breaking the consolidation range to the downside, EURUSD has completed the correction at 1.1104; right now, it is forming one more ascend...
Forex Technical Analysis 14.01.2020 (USDJPY, AUDUSD, BTCUSD)
Forex Technical Analysis 14.01.2020 (USDJPY, AUDUSD, BTCUSD)
EURUSD, “Euro vs US Dollar”EURUSD continues moving upwards; it has broken 1.1131. Possibly, today the pair may reach 1.1150 and then start a new correction to return to 1...
Forex Technical Analysis 13.01.2020 (USDCHF, USDJPY, AUDUSD)
Forex Technical Analysis 13.01.2020 (USDCHF, USDJPY, AUDUSD)
EURUSD, “Euro vs US Dollar”EURUSD is moving upwards; it has reached its downside target at 1.1085. Possibly, the pair may break 1.1129 to the upside and then form one mor...
Forex Technical Analysis 08.01.2020 (EURUSD, GBPUSD, USDCHF)
Forex Technical Analysis 08.01.2020 (EURUSD, GBPUSD, USDCHF)
EURUSD, “Euro vs US Dollar”EURUSD is correcting towards 1.1090. Possibly, today the pair may fall with the short-term target at 1.1120 and then form one more ascending st...
Forex Technical Analysis 31.12.2019 (USDJPY, AUDUSD, BTCUSD)
Forex Technical Analysis 31.12.2019 (USDJPY, AUDUSD, BTCUSD)
EURUSD, “Euro vs US Dollar”EURUSD is forming the first ascending wave towards 1.1550. After that, the instrument may start a new correction to reach 1.1200 and then form ...
Forex Technical Analysis 30.12.2019 (USDCHF, USDJPY, BTCUSD)
Forex Technical Analysis 30.12.2019 (USDCHF, USDJPY, BTCUSD)
EURUSD, “Euro vs US Dollar”After completing the ascending wave at 1.1133 and forming an upside continuation pattern around 1.1140, EURUSD has broken 1.1150 to reach 1.121...
Fibonacci Retracements Analysis 27.12.2019 (BTC, ETH)
Fibonacci Retracements Analysis 27.12.2019 (BTC, ETH)
BTCUSD, “Bitcoin vs US Dollar”As we can see in the H4 chart, the convergence made the pair reverse and start a new rising correction, which has already reached 23.6% fibo...
Forex Technical Analysis 27.12.2019 (USDJPY, AUDUSD, USDCAD)
Forex Technical Analysis 27.12.2019 (USDJPY, AUDUSD, USDCAD)
EURUSD, “Euro vs US Dollar”EURUSD has formed an upside continuation pattern around 1.1100; right now, it is growing to reach 1.1121. After that, the instrument may start ...

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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