Fractal is a forex trading indicator which creates tops and bottoms of the market direction. These tops and bottoms play as resistance and support. This technique is established with the breakout of this fractal in the trend movement. MACD is utilized in this technique for distinguishing the trend and so achievement rate of this strategy is quite fine.
- Fractals and MACD indicators are required.
- Highly recommended timeframe is 1hr and above.
- All currency pairs should work fine.
- MACD must be beneath the 0.0 level and this notifies you that the market condition is in a downtrend.
- A fractal creates on at the lowest signifying a support level.
- Position an auction stop pending order 1 to 2 pips (+ spreads) beneath the low of the fractal.
- Position your stop 2 to 5 pips higher up, the high of the breakout candlestick that cracks the fractal bottom but if that stop-loss is very nearby, then search for the most latest swing high and position your stop-loss at least a minimal of two pips higher up its high.
- Take-gain should be established at 1:2 times (or greater) than you risked at the beginning or by preference, you can utilize the preceding swing low as your take-gain aim level.
This chart beneath illustrate an auction trading establishment and what to setups to evade as well:
The Purchase Rules
- MACD must be higher up the 0.0 level, his illustrate that the market condition is in an uptrend.
- A fractal creates on at a top illustrating a resistance level.
- Position a purchase stop-loss pending order 1 to 2 (+spread) higher up the high of the fractal.
- Position your stop 2 to 5 beneath the low of the breakout candlestick that hold on the factual top but if stop-loss is too nearby. Then search the most current swing low and position your stop-loss at least a minimal of two pips beneath its low.
- Take-gain aims should be established at 1:2 times (or greater) than what you risked at the beginning or by preference, you can utilize the prior swing high as your take-gain aim level.
Below is a chat illustrating purchase trading establishment:
Utilize this strategy at your own risk. WindsorForex.com cannot be responsible for any losses associated with using any strategy presented on the site. It’s not recommended to use this strategy on the real account without testing it on demo first.