Fractal Geometry

The steeper the angle of the fractal line, the better. AUD/USD H1 #livetrades

This setup never filled so it will be turned off for the weekend.

This trade was filled and was a loser for 12 pips.

However, if you look a little closer into what actually happened it reveals why I like this strategy so much. My EA was set with a 20-pip TP with a 12-pip SL and was set to move the SL to break even after 10 pips. As it turns out price actually bounced about 5 pips after the original first touch of our fractal line. So, if I was sitting at the computer at the time of the first touch I would still have the option of taking a 5-pip profit or of moving the SL to break even after the 5-pip bounce. As it happened, the trade was filled during my sleep time.

Nonetheless, the theory that a broken fractal line shows strong price momentum gives us a chance at a recovery trade by trading in the new direction. Once we get a convincing candle close past the broken fractal line, we just wait to sell a retrace back to the fractal line.

ORIGINAL 5-PIP BOUNCE ON THE 1-MINUTE CHART


POTENTIAL RECOVERY TRADE ON THE H1 CHART

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Just in case The Dragon drops overnight we are ready to buy the line. Risking 30 pips for 90. GBP/JPY H1 #livetrades

A gorgeous structure. Set and forget and review the results if/when we get filled. EUR/USD H4 #livetrades

UPDATE: We got our order filled overnight.

The EA was set for a 16-pip SL with a 32-pip TP and was set to move the SL to BE after 16 pips green. It looks like we got as high as +25 pips in the green so now the SL is at BE. Now we are sitting at +6 pips and will let this run a little longer and will have to close it out before the daily rollover provided we don't get stopped out at BE first.

I might start setting these trades up with two fractal lines within a pip of each other that way I can bank one trade with a smaller TP and let the other one run its course seeing as I'm usually asleep when these trades get filled.

EUR/USD H4 CURRENT CHART

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USD/CAD M30

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Missed filling by 5 pips. No harm no foul. Stalk next potential setup.

AUD/USD H1 - Scalping Fractal Lines

AUD/USD - UPDATED RESULT: Perfect entry and a huge score. Trading Fractal Lines is mechanical and stress-free.

EUR/USD WEEKLY CHART - Waited 5 weeks for this long-term trade to fill. Will add another short position if we spike to 1.1235. Risking 100 pips for 300 pips #livetrades

Important CPI print coming out Tuesday for the Kiwi - here's the trading plan.

NZD/USD H1 CHART

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Still holding, both positions filled

No fill yet but the EA is set to buy the first touch if/when it happens

Same old simple setup. Fractal Line moving away from price, EA set to buy the first touch.

Gorgeous parallel and uniform impulse waves.

AUD/JPY H1 CHART

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EUR/USD WEEKLY CHART - UPDATE - One week later we are deep in profit. Will probably bank one position and move Stop Loss to Break Even on our second position. Patience paying off.

GBP/USD DAILY - Order filled - Explanation on chart

Wow, that worked out well. Instant 80 pip sell off our 70 pip TP hit during the night. Wake up to a bag of pips on a Friday? Gotta love that.
GBP/USD DAILY - UPDATED CHART

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Do your fractal points have any particular requirements to use them as ABCD?
It's looks very simple construction but have the feeling is not really so simple

Hi Merka, sorry for the late response.

The answers are all in post #1

RULES/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.