3 Bar Fractal Break

Dax Trade today with potential new one

i spotted the same but missed them taking kids school.

Now I see why so many people lose money trading
Come on, engage brain people!

caveat: not saying I actually make money, but I'm trying...

GBPUSD 4H

usd,chf

I opened a candle late in the deal.

Not valid, for the long setup, the high of 4 must breach the high of 3.

Which is correct?

First image, 4 needs to break 3

Does the candle after number 4 have to close below 4 low or just break below low to enter?

Also does stoploss go above number 4,3,or 2 ?

just break it, sl is above or below the hourly candle that closes below/above candle 4 ( aggressive ) or conservative stop is nearest 3 bar hourly fractal

go over the chart and look

hi guys,

thanks dazjw2311 for sharing this method.
this my first version of this indicator based dazjw2311 method. if you have any idea or found bugs please tell me.
thanks

can somebody test this indicator for me? im putting togther something interesting for weekly bias which will help with this method, ill also be posting new set ups next week so time to test this is limiting.

your indicator didnt take this

i may do a webinar the weekend , ill let you know whats what. Got a good process for you to follow.

Interesting.

Those who traded this what are your results guys?

Here is my take on the indicator. Validbars = time range when the initial setup is valid for a breakout. Options to ignore tall/short bar4s. Sound/text alerts and you can turn lines/boxes on or off.

The bad news is ...included in these screenshots if anyone cares. It's only based on a few days of data so it's hardly definitive but I'm going to stick with 'regular' fractal breaks (breaks of 3 bar peaks/troughs), sorry dazjw2311 but I would want someone to tell me if my system could be improved (because ego < family welfare).

1-2-3-4 method


peak/trough break method


To be fair it does look like 1-2-3-4 performs better in ranging markets than peak/trough. If you do stick with this method, I recommend adding a rule that I'm calling a 're-breakout'. Basically whenever a trade gets stopped out but price returns to break the candle4 level within a given time range you should re-enter and usually that trade will succeed. In fact, if you only traded re-breakouts you'd have a very high win rate but take far fewer trades.

I'll see myself out.

What a fantastic job you have done here. Thank you for your hard work.
Generally it works well.
There's a minor thing that I spotted in the chart.
I have changed the 'IgnoreCandle Taller Than' to 200 (does it mean 20 pips for a 5 digit mt4 platform?)
A red horizontal line was drawn on bar 4, even though it did not break bar 3.
While on the left of the chart, a red horizontal line was drawn on a tall bar 4.
Probably it's just minor.

Win rate could improve if sell signal only to be taken below a moving average.
Once again great work.