Fractal/Swing Trading Method With Trend

EDIT, - I do not use this STR by myself



Hi all.

This is a simple method for trading I want to introduse using fractals, whitch is nothing else then price action itself.Due to accuracy and for not to be glued to the screen I will trade it on 4H time frame.For purpose of simplicity I want that the method would be as much mechanical as posible.On the other side of the coin the rules is not writen on the stone so I will use some discretion and common sence as well to be flexible and adaptive to the changing market conditions. For better focus I will mainly trade the Eur/Usd pair.
Fractals that I will use for my method will be for two purposes, they self will determine the trend in some grade and they will help visually show the swing for a lazy trader. Any positive sugestions and remarks much apreciated.

rules/guidelines

1.I will use fractals that are confirmed. A confirmed fractal is a five candles combination where two candles from both side of the mid candle are higher(bullish fractal) or lower(bearish fractal) and the third candle after the mid candle is closed.

2. If a bullish fractal`s low is higher then the previous bullish fractal`s low it means that market is making a higher low and it is where I might be interested to buy.

3. If a bearish fractal`s high is lower then the previous bearish fractal`s high it means that market is making a lower high and it is where I might be interested to sell.

4. I will open a position after the confirmed fractal at next candle open if it is not two late to enter meaning that market has already moved a good distance from the fractal`s low/high. I will not trade if that move is more then 100persent of ADR10 value so I will wait for a retrace and preferably will enter on bullish candle(if the fractal bulish) not on self retrace. The oposite for bearish fractal.

5. If the fractal is bullish the third candle after the mid candle also shoud be bullish and not bearish. Just the oposite for bearish fractal.

6. As I say the fractals self show the trend in some grade just making higher then previous swings in an uptrend(or oposite for downtrend) but it is always better to be more picky and trade in the direction of a higher time frame such as daily in this case.

7. The stop loss will be either the low of the fractal, if it is not too far away from the opening price or a 50 persent of ADR10 value.
The take profit will be either fast amount about 80 persent of ADR10 value or the positions can be closed at support/resistance areas, also when simply the market get exhousted in your opinion. Also I prefer the safety so I will move sl to BE after 30-60 pips or another amount in profit depending on volatility and discretion.

S.



ADR indi atached if needed(from somewhere in FF)

I will make some live trade examples when they occur in the near future.

pl provide some example charts

An example of a bullish fractal. Sure I can find hundreds of them that work out. But the most important are those we take in live market.

There are so many methods, strategies, and even systems avialable at FF and other places, also it is posible to create even more ways to trade, and keep on doing this. There are so many different ways to trade and still there are so many traders that find it dificult to be profitable. I do not even say consistently profitable, just profitable on the longer run. I am not consistent as well at least as I probably wish to be. No problems I can ascept that. Maybe that`s the way it has to be. I can also try to improve that. Anyway what I want to say is that it is not the method that matters. I truly believe that we don`t really need any method to be profitable, if we at least make sure that we do one thing... And what is that??? I will tell you that. It is an old truth and nothing new. Anyway me too has tried many methods(to be sure). And what I have learned from my experience, again that one thing that matters is... the trend. Really we need very little, just the trend to be with us. The nature has it`s lows. No difference with trading, it`s most important low is that the price tend to move in trends. At the same time everything is relative and from another point of view we can be wrong or right at the same time.And yes what brings the order to the chaos is the lows. Markets tend to move in trends, thats the low.
And it is logical that when we enter the market(no matter where we enter) we need the price to move in the direction we have entered, in order to make profit (you knew that). It is obvious. So once again it means that we need to trade with the trend. We can jump up and stay in the air for a second, but the low of gravitation helps us down. If it would stop working we would get lost and crashed in a second. Thats why I thank to the natures lows.And I say thanks to the low of trend, because I am a trader.
It is not bad to have a method for trading. It can help in some grade to make us more confident(if needed), to avoid overtrading, because we must wait for a setup, also we have rules for money management what helps to stay in the game and try once more, and other things. But please stop, I have a question to you. Are you trading with trend?

Saintsurfer,

Thanks for the post.
I am interested in your method.

Cheers

Fractal needs two bars next than the fractal bar to confirm. So on a graph it is ok but live ? Will repaint !

In a multi time frame, why not give a try ?

Imagine a timeframe having 5 bars of the lower one (M5 having 5 * M1 bars), time-centered on the third lower time frame. Then, yes, at the higher timeframe, your fractal will show exactly when you want. But the higher time frame is not synchronized with the lower one.

I LOVE the fractal idea but maybe this is not the best way to envisage it: i have to work on that !

I have began to use fractal swings on m1 tf, and it has helped me establish direction of momentum.