Forex Reversal & Fractals Strategy (A Trader’s Guide to Using Fractals Effectively) [9116]

High accuracy “Reversal Fractals System and Strategy” – This is a very simple yet profitable strategy. Fractals are simple five-bar reversal patterns. This article will explain fractals and how you might apply them to your trading strategy.

• Time Frame: H1 or higher
• Currency Pairs: Any

 

• Reversal Fractals
• The profit Goldeneye
• Moving Average
• DashBoard
• Auto Pivots
• Signal Line
• Probability Meter
• REND (RSI Filter)
• Stochastic Oscillator
• MACD Bars

Fractals are composed of five or more bars. The rules for identifying fractals are as follows:

• A bearish turning point occurs when there is a pattern with the highest high in the middle and two lower highs on each side.
• A bullish turning point occurs when there is a pattern with the lowest low in the middle and two higher lows on each side.

Fractals are lagging indicators.

A fractal can’t be drawn until we are two days into the reversal.

However, most significant reversals will continue for more bars, benefiting the trader. Once the pattern occurs, the price is expected to rise following a bullish fractal or fall following a bearish fractal.

Most charting platforms now provide fractals as a trading indicator.

This means traders don’t need to hunt for the pattern. Apply the indicator to the chart, and the software will highlight all the patterns. Upon doing this, traders will notice an immediate problem: this pattern occurs frequently.

Fractals are best used in conjunction with other indicators or forms of analysis. A common confirmation indicator used with fractals is the RSI and MACD.

• Download “ForexWOT.Com-ReversalFractals” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “ForexWOT.Com-ReversalFractals.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “ForexWOT.Com-ReversalFractals” trading  system and strategy
• You will see “Reversal Fractals Trading System” is available on your Chart

 

• Reversal Fractals: Green “UP” arrow below the previous swing low
• TREND (RSI Filter): Green histogram
• Stochastic Oscillator: Bullish (aqua line > yellow line)
• MACD Bars: Green

 

• Reversal Fractals: Red “DOWN” arrow above the previous swing high
• TREND (RSI Filter): Red histogram
• Stochastic Oscillator: Bearish (aqua line < yellow line)
• MACD Bars: Red

 

• Sometimes switching to a longer time frame will reduce the number fractal signals, allowing for a cleaner look to the chart, making it easier to spot trading opportunities.
• Sometimes switching to a longer time frame will reduce the number fractal signals, allowing for a cleaner look to the chart, making it easier to spot trading opportunities.