Beginners Trader Strategy - Fractal Strategy
General Description
In the fractal strategy, we are looking for: A combination of averages and fractals which indicates the possibility of a future trend.
This strategy is suited for time frames of 15 minutes and up, where the longer the time frame, the higher the level of precision.
This strategy is suitable for: All currency pairs, commodities, indices, stocks and future contracts.
Indicators used: Alligator, Fractals.
Position Management
A signal is received when the following conditions are met: deeply non-trending market, characterized by a crossing of the three average lines of the Alligator indicator, and after the values of a fractal pair converge more than the pair that preceded them. A candlestick appears which passes the fractal rate at the peak of a long trade of the trough of (for) a short position, plus a security range of 30 pips, in order to prevent a "false" break. The stop loss should be set 30 pips from the value of the opposite fractal.
The trade should be exited when a candlestick appears whose closing value is within the range of averages.
Indicators
We will add the following indicators: the Alligator indicator, found in insert->indicators->Bill Williams->Alligator. And will leave it with the default values of 13,8,5 and a shift value of 8,5,3. We will also add the Fractals indicator, found in insert->indicators->Bill Williams->Fractals,
Example long trade - In this example, we test the strategy in the GBP/USD currency pair, in a 4 hour time frame. A preliminary signal is received when the indicator's moving averages cross over, and a fractal pair appears which is more converged than the pairs that preceded it.
The buy position should be entered when the value exceeds the upper fractal by 30 pips.
An example of this can be seen here.
The stop loss should be set 30 pips from the value of the lower fractal.
The trade should be exited when a candlestick appears whose closing value is within the range of averages.
Example short trade:
In this example, we test the strategy in the EUR/GBP currency pair, in a 4 hour time frame. A preliminary signal is received when the indicator's moving averages cross over, and a fractal pair appears which is more converged than the pairs that preceded it.
The sell position should be entered when the rate passes the lower fractal by 30 pips.
An example of this can be seen here.
The stop loss should be set 30 pips from the value of the upper fractal.
The trade should be existed when a candlestick appears whose closing rate is within the range of averages.
In this example, we would have earned 239 pips over a period of 6.5 days.
Whats Next?
*
Or go back to the Education index
In the fractal strategy, we are looking for: A combination of averages and fractals which indicates the possibility of a future trend.
This strategy is suited for time frames of 15 minutes and up, where the longer the time frame, the higher the level of precision.
This strategy is suitable for: All currency pairs, commodities, indices, stocks and future contracts.
Indicators used: Alligator, Fractals.
Position Management
A signal is received when the following conditions are met: deeply non-trending market, characterized by a crossing of the three average lines of the Alligator indicator, and after the values of a fractal pair converge more than the pair that preceded them. A candlestick appears which passes the fractal rate at the peak of a long trade of the trough of (for) a short position, plus a security range of 30 pips, in order to prevent a "false" break. The stop loss should be set 30 pips from the value of the opposite fractal.
The trade should be exited when a candlestick appears whose closing value is within the range of averages.
Indicators
We will add the following indicators: the Alligator indicator, found in insert->indicators->Bill Williams->Alligator. And will leave it with the default values of 13,8,5 and a shift value of 8,5,3. We will also add the Fractals indicator, found in insert->indicators->Bill Williams->Fractals,
Example long trade - In this example, we test the strategy in the GBP/USD currency pair, in a 4 hour time frame. A preliminary signal is received when the indicator's moving averages cross over, and a fractal pair appears which is more converged than the pairs that preceded it.
The buy position should be entered when the value exceeds the upper fractal by 30 pips.
An example of this can be seen here.
The stop loss should be set 30 pips from the value of the lower fractal.
The trade should be exited when a candlestick appears whose closing value is within the range of averages.
Example short trade:
In this example, we test the strategy in the EUR/GBP currency pair, in a 4 hour time frame. A preliminary signal is received when the indicator's moving averages cross over, and a fractal pair appears which is more converged than the pairs that preceded it.
The sell position should be entered when the rate passes the lower fractal by 30 pips.
An example of this can be seen here.
The stop loss should be set 30 pips from the value of the upper fractal.
The trade should be existed when a candlestick appears whose closing rate is within the range of averages.
In this example, we would have earned 239 pips over a period of 6.5 days.
Whats Next?
*
Or go back to the Education index
