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How to Use Fractals in Trading, Must Know!!!

The fractal platform trading strategy is pretty simple to use. At the same time, it can produce quite a relief result. Although in Forex fractals are markers, I would say this strategy is without markers. This is a problem that doesn't often occur when markers do the whole job for a trader. Fractals are very easy to detect.

What is the method for finding fractals?

The Fractal Pattern consists of 5 candlesticks. The first one is a fractal candlestick. It must have 2 more candlesticks on its right side that do not want to cross its boundaries. After 2 candlesticks are created on its side, the fractal is considered complete; if one of the candlesticks breaks the barrier of the fractal candlestick, the pattern is considered to be indeterminate.

What is a fractal boundary?

Fractals can be top or bottom. If the upper fractal becomes complete, the 2 candlesticks on its right and left cannot violate the upper bounds of the pattern. Next is the pattern painting.

At first thought, that's pretty gross. I've noted down each pattern with a different color. Each box contains 5 candlesticks: one fractal in the middle and 2 on each side, always located within its boundaries. I've done this to prove to you that a fractal candlestick of one pattern can easily become a side candlestick of another. They help us break the ideals of style and put Stop Loss. Normally, you can count them yourself, and if you have enough experience, you will see them unmarked. That's why I said the strategy I described as an unmarked strategy.

Fractal part trading

The important identities of the strategy are:

  • Currency companion: multicurrency
  • Duration frame used: M30, M5
  • Instruments used: Bill Williams standard Fractals

Knowing the trend

Start your analysis on the M30 diagram. The first thing to try is to create the last broken fractal. Goals that are already flawed are goals to which your entry point must lead. (Observe the illustration on the diagram.)

As you can see, the last broken fractal is the top fractal (embedded in the red circle). The red line is the upper limit, broken by the price. Here, you have to look for clues to buy because the situation indicates an upward movement.

Looking for entry point

Once you've determined your goals, you'll need the correct entry point to place pending instructions (I'll work with an additional action illustration). Make this, move from M30 to M5. After that draw a straight line above the current candlestick. Ignore everything on the right side of the row. Focus only on what's on the left side - we're waiting for a smaller fractal to be created. After it ends, reach the horizontal line beyond its limit (small) and wait for the price to break it. If this is not tried, and a new fractal is created, draw a line to its borders and wait to unwind again. After the dotted line, find the last upper fractal and place the pending Buy Stop instruction on its border. Stop Loss must be placed on the horizontal line drawn first.

Next is an illustration on the diagram:

In the picture above, almost everything about trading on the Forex fractal platform is made real. You need to paint a straight line after the special action. After that a smaller fractal is created, and at its lowest point, a horizontal red line is drawn. After it is broken, as well as at the top of the last top fractal, a green colored Buy Stop instruction is placed with a Stop Loss at the top of the last bottom fractal (I highlighted it with a blue line).

Also, there are situations when you need to move pending instructions. In the illustration above, you may need this if the current upper fractal is formed – then you need to take the pending instruction to the highest level. By shifting the SL, it's similar: if a new, smaller fractal is created, you have to put the SL on its border. The current fractal can be created above or at the bottom of the initial one.

Exploring trade

The importance of further trading with a strategy on the Forex fractal platform is to send the position to the point of settlement. After the pending instruction is triggered, and the price moves to the required target, check the latest fractals in the SL section. In our illustration, we have a buy trade, the SL is on the fractal edge of the last base fractal, and as soon as the last one is created, drag the SL to its border, and continue like this. Also, you can use today's pivot as a goal; if the open trade is transferred to the next day, the next pivot becomes the goal.