Chaos Fractals Analysis & Chaos Fractals Trading Signals

Developed by Bill William

A fractal is formed by three 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 Trading Signals

Breakout Trading

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

Buy Signal

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

Stop Loss 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 Tutorials & Topics:

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