The simple definition of rising Fractal is a bar that has the highest quality, which is flanked by a minimum of two lower high bars. Likewise the opposite for the fractal goes down.
English from fractals is fractal. The term fractal was made by Benoît Mandelbrot in 1975 from Latin, namely fractus which means "broken", "broken", or "irregular". Before Mandelbrot introduced the term, the common name for such structures (for example Koch snowflakes), was the monster curve. Fractal characteristics, although easily understood intuitively, are very difficult to make mathematical definitions. Mandelbrot defines fractals as "a set whose Hausdorff Besicovitch dimensions are larger than their topological dimensions". For fractals that resemble themselves exactly, the Hausdorff dimension is the same as the Minkowsi Bouligand dimension. Believe it or not, before the fractal concept was discovered by the scientist, technical analysis has used the basic principle. Especially through the theory of Elliott Wave that existed in the 1930s.
In our discussion this time it was not directed at the fractal referred to by Mandlebrot or Elliott. The above highlights are aimed at measuring the basis of the theory, especially what Elliott said about price movements. This idea arises because it provides a lot of inspiration in the analysis process, including in the emergence of indicators that are the subject of this time. Fractal referred to here is one of the five indicators introduced by Bill Williams. This indicator serves to provide an alternative description of the peak (top) and bottom (bottom) of a price movement of an instrument from a certain period.
The simple definition of rising Fractal is a bar that has the highest quality, which is flanked by a minimum of two lower high bars. Likewise the opposite for the fractal goes down. Fractal formed at a high point or lowest point will give an arrow that matches the direction of its movement.
How to use fractal -
In Fractal use in forex trading is to take a position according to the direction of the fractal breakout. If the price moves past the rising fractal, then the position taken is to buy. Conversely if the price moves past the fractal down, the position taken is selling. However, not all fractals can be used as a reference in determining a signal.
Only fractals are preceded by other fractals with the opposite direction that can be used as a signal.
Fractal also has a type of start, that is a fractal which is the starting point of a fractal signal. In other words, the fractal is always followed by another fractal in the opposite direction. In its use, Fractal start can be used as a stop loss placement.
Calling Fractal in Graph
Make a fractal in the Trading Platform, please click the indicator function icon. Choose Bill Williams, then fractal. Or click on the insert menu and select the indicator, Bill Williams then select fractal. Fractal Indicator -
Alligator Filter
According to Bill William, the use of Fractal as a signal must be filtered through the Alligator. If the buy fractal is higher than the Alligator teeth (red), then the buy transaction is taken several ticks above the buy fractal. And if the fractal is lower than Alligator teeth, then sell transactions should be taken a few ticks under Fractal sell. For the record, after a fractal signal is formed, it will last as a signal until a failure or subsequent fractal occurs until it is formed.
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