Chaos Fractals Metals Analysis & Chaos Fractals Trading Signals

Created by Bill Williams

A fractal is formed by three metals price bars

It is used to detect the bottoms or the top.

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

Up Fractal

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

Up Fractal

Metals Analysis and How to Generate Trading Signals

Breakout Trading

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

Buy Trading Signal

If metals price breaks 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 Metals Signal Break-Out Trading

Sell Trading Signal

If metals price breaks below the most recent Down Fractal enter short.

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

Sell Metals Signal Break-Out Trading