Chaos Fractals Analysis & Chaos Fractals Trading Signals

Developed by Bill William

A fractal is formed by three trading price bars

It is used to detect the bottoms or the top.

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

Up Fractal

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

Up Fractal

Gold Analysis & How to Generate Signals

Breakout Trading

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

Buy Trading Signal

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

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

Buy Signal Break Out Trading

Sell Signal

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

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

Sell Signal Breakout Trading

Study More Lessons & Topics:

• XAUUSD Average Directional Index Technical Indicator
• What's the Difference in Gold between Sell Stop XAU/USD Order & Buy Stop XAU/USD Order?
• What Happens when a Downwards Trendline is Broken?
• Trading Analysis of Stochastic Momentum Index Technical Indicator Buy Forex Trade Signal
• Day Trade Using the 1-Hour Gold Chart Tutorial Course
• How to Analyze MetaTrader 4 XAUUSD Trend-lines & MT4 XAUUSD Channels in MT4 XAUUSD Charts
• How Can I Draw Fibonacci Extension Levels on Upwards Gold Trend?