Chaos Fractals Analysis and Chaos Fractals Trading Signals

Developed by Bill Williams

A fractal is formed by three crude 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 two higher lows on each side (V-shaped)

Up Fractal

Crude Analysis and Generating Trading Signals

Breakout Trading

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

Buy Signal

If crude 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 Breakout Trading

Sell Trade Signal

If crude price breaks-out 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 Signal Breakout Trading