Fractal Geometry

ForexClinic

Hello traders and welcome to the thread.This strategy is based on fractal geometry for lack of a better term. It might sound complicated but it's really quite simple and elegant in its application. (At least I think it is). My system provides a stress-free mechanical way of looking at price action. We use manual drawing in conjunction with a modified fractal indicator. I prefer a clean chart and a clean heart.The sole intent of this thread is to build a community of hard-working productive pip harvesters. Period.Rules:#1) Political/Ideological arguments will not be tolerated here.#2) Rudeness, racial slurs, or vulgarity will also not be tolerated here.Disclaimer: It's assumed that individuals are responsible for their own actions. My live trades are not recommendations, they are solely for the purpose of illustrating this system. Trading incurs risk and should be taken seriously. It's advised that you test this strategy on a demo account.THE STRATEGYWe use the "first touch" principle. This means we buy/sell based on the first touch of a fractal line.1) Fractal lines are derived by using the midpoints of impulse waves.*****The modified fractal indicator is the basis for these derivations*****Before discussing certain rules I think it's best to post a couple of examples for visual reference. Of course, these are cherry-picked to illustrate the strategy and to make it easier to understand these simple derivations.CAD/JPY 1H CHART ILLUSTRATING THE FRACTAL DIAGONAL LINE DERIVATION.Attached Image (click to enlarge)Click to EnlargeName: CADJPYH1.pngSize: 56 KBUSD/CAD 4H - ANOTHER EXAMPLEAttached Image (click to enlarge)Click to EnlargeName: USDCADH4.pngSize: 46 KBRULES/OBSERVATIONS#1) Fractals A, B , C, and D must be alternating highs and lows and vice versa.#2) Major fractals are better than minor fractals but both are valid. Fractal D is the completion of our structure and can only appear after the 7th candle close (minor fractal). Major fractals appear after the 12th candle close.#3) There can be NO other fractals between AB, BC, or CD#4) We are looking for "uniform" impulse waves. We don't want to see messy, jagged price action between our fractal points.#5) When fractal D appears we can then draw our structure. At this point, we want to see "price separation" from our fractal line (FL).#6) Be EXTREMELY accurate in your drawing making sure your fractal line goes perfectly through each impulse wave midpoint. Entries are everything and can be remarkably different if the drawing is inaccurate.#7) Note that some brokers use New York candle close time and some don't. Also, different spreads may affect when or if a fractal actually prints so you can get different structures or no structure at all for the same pair. The theory is still valid as long as you are consistent with your drawings.#8) You do not have to buy/sell the first touch. If you feel that there is too much fundamental momentum when price is approaching your fractal line, then you can wait to see if price breaks through your fractal line with a convincing candle close past that line. Then you can buy/sell the other side of the line upon the first retracement back to the line. In essence, this would be like a trend continuation trade.#9) We aren't trying to predict some big trend change. We are scalping fractal lines using higher time frames.#10) Don't hesitate to enter a bit early with a FOMO trade. Maybe one entry a few pips before the line and one on the touch, then take profits on one early and let the other run if it's going in your favor. Be creative with your micromanagement.

Taimoor
24-02-2021
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