Fractal Analysis


Technical Analysis & Forecast 05.03.2024
Technical Analysis & Forecast 05.03.2024
EURUSD, “Euro vs US Dollar” The EURUSD pair has completed a growth wave to 1.0866. A correction structure to 1.0843 (testing from above) is expected today. Once the corre...
Technical Analysis & Forecast 04.03.2024
Technical Analysis & Forecast 04.03.2024
EURUSD, “Euro vs US Dollar” The EURUSD pair has completed a decline wave, reaching 1.0799. Amid the news, the market received support at this level, creating upward momen...
Technical Analysis & Forecast for March 2024
Technical Analysis & Forecast for March 2024
EURUSD, “Euro vs US Dollar” The EURUSD pair corrected to 1.0886, and today the first structure of the fifth decline wave to 1.0570 is already developing. The target of th...
Technical Analysis & Forecast 01.03.2024
Technical Analysis & Forecast 01.03.2024
EURUSD, “Euro vs US Dollar” The EURUSD pair broke below the consolidation range and completed the movement, reaching 1.0796. Today a corrective movement to 1.0821 is expe...
Technical Analysis & Forecast 29.02.2024
Technical Analysis & Forecast 29.02.2024
EURUSD, “Euro vs US Dollar” The EURUSD pair has corrected to 1.0845. Today the market is forming a consolidation range around 1.0836. With an escape from the range upward...
Technical Analysis & Forecast 28.02.2024
Technical Analysis & Forecast 28.02.2024
EURUSD, “Euro vs US Dollar” The EURUSD currency pair extends a decline wave to 1.0830. Practically, a consolidation range continues developing around this level. With an ...
Technical Analysis & Forecast 27.02.2024
Technical Analysis & Forecast 27.02.2024
EURUSD, “Euro vs US Dollar” The EURUSD pair extends a correction wave to 1.0858. Today the market is forming a narrow consolidation range under this level. With an escape...
Technical Analysis & Forecast 26.02.2024
Technical Analysis & Forecast 26.02.2024
EURUSD, “Euro vs US Dollar” The EURUSD pair continues developing a consolidation range around the 1.0823 level. A decline link to 1.0808 is expected today. Next, a rise t...
Technical Analysis & Forecast 22.02.2024
Technical Analysis & Forecast 22.02.2024
EURUSD, “Euro vs US Dollar” The EURUSD pair completed a growth wave structure to the 1.0823 level. Today the market has formed a consolidation range around this level and...
Technical Analysis & Forecast 21.02.2024
Technical Analysis & Forecast 21.02.2024
EURUSD, “Euro vs US Dollar” The EURUSD pair formed a structure of a growth wave to 1.0838 and a decline structure to 1.0803 today. Currently, a growth link to 1.0820 is f...

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