Chaos Fractals Commodities Analysis & Chaos Fractals Trading Signals

Created by Bill William

A fractal is formed by three commodities trading price bars

It is used to detect the bottoms or the top.

Up Fractal- defined as a middle bar with 2 lower highs on each side (A- shaped)

Up Fractal

Down Fractal- defined as a middle bar with 2 higher lows on each side (V-shaped)

Up Fractal

Technical Analysis & Generating Trade Signals

Breakout Trading

The break out method of using fractals to initiate trades is to take trades based on the direction of a trading price break out above or below most recent fractal.

Buy Trading Signal

If commodities price breaks-out above the most recent Up Fractal enter long.

Stop losses should be set below the lowest low of the most recent Down Fractal or second most recent Down Fractal.

Buy Trading Signal Breakout Trading

Sell Trading Signal

If commodities price breaks-out below the most recent Down Fractal enter short.

Stoploss orders should be set above the highest high of the most recent Up Fractal or second most recent Up Fractal.

Sell Trading Signal Breakout Trading