# FOREX INDICATORS

indicator fractal

Fractal forex is a repetitive geometric pattern, whose shape can be divided into parts and to a smaller copy of the whole.

Fractals are used in computer modeling of physical structures that have no simple geometric patterns such as clouds, mountain landscapes, shorelines, etc.

The basic properties of fractals in Forex:

- Fine structure, ie they contain an arbitrarily small scales.

- Irregular to be described in traditional geometric language.

- They have some form of self-similarity, allowing approximate.

- They have a fractional dimension. .

Theory and construction of fractals

In classic technical analysis (as Bill Williams), a fractal is a shape consisting of five bars. There is a fractal of fractal up and down. The graph of exchange rates fractals are designated as icons on the price bars.

upper fractal (marks above the bar prices)

Fractal up

As we have said, fractal consists of five bars, where the center of the fractal with the highest price. It is called fractal up. This will be a critical price for entry and exit from the market.

lower fractal (a mark under the bar prices) lower fractal - a bar, which has two previous and subsequent values ??above Low (possibly equal).

Fractal Bill Williams

should be noted that fractal Bill Williams in fact are not - this is more pseudo-fractal, since only reveals the extreme points. Fractal has the remarkable property of completeness, resulting in the dynamic transition from one to another fractal. In addition, the fractal Bill Williams does not describe the variety of wave oscillations.

Trading Examples of fractals.

As with many trading indicators, fractals are best used in conjunction with other indicators and analysis methods. Perhaps the most common indicator of a fractal is a confirmation of the "Alligator" (a tool based on moving averages).

The main disadvantage of this system is in significant fluctuations. However, there are many other methods that may go well with fractals.

basic properties of fractal indicator:

- This is a lagging indicator and, therefore, best used as confirmation of other indicators, and indicators.

- The higher the timeframe in which the fractal is sought, the stronger the signal. However, you must remember that the longer period of time, the smaller the number of signals to trade.

- Best use fractals not immediately several timeframes and in combination with each other.

- Always use fractals in conjunction with other indicators of the system. They are most effective as a decision support, rather than single use.

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