the right shows where price has come back and pierced the second fractal, but not managed to stay within. Here is what it will look like: As you can see, I marked where our original fractal was discovered. So how can we use this information, and how does it appear on our forex charts? The reversing set is a series of at least five successive bars. And when all short trade setups are correct if the fractal is below the alligators teeth (the center average). It is a way of understanding forex price action and trade flows at their most fundamental level. So in order for a fractal to appear and stay on the chart forever, the trader must wait for 2 candles to the right of the fractal.
Nils forex, Forex handelssystem, Forex trading fx pro, Fibonacci forex trading youtube,
So when you see a fractal here is what may have happened for it to appear: There were a series of at least five successive bars, with the highest high in the middle and then the two lower highs are on both sides. The process of breaking involves prices moving either above, or below, what the fractal indicator predicts. Even more important; they also provide places for great stop losses. The two charts below attempt to give an explanation. More importantly, the boundaries of those forex.com ninja trader channels are being watched by the Big Guns in the market, thus forming levels of support and resistance. The Purpose of Using Fractal Indicators. Using two fractal levels distance instead of 1 would give more breathing space to the trade. Also, please give this strategy a 5 star if you enjoyed it! What happened after was that there were five or more candles that appeared that did not drift down to the alligator teeth, the alligator lines did not cross, and the price action finally broke above the fractal candle thus triggering a trade. Scaling in and Scaling out.