The Fractal Guru Strategy

[urbanforex]

The Fractal Guru Strategy

Time Frame : 15mins and above
Indicators : Average Directional Movement Index - ADX (Settings : 14) and Fractals
Strategy by : Navin Prithyani

Long (Buy) Positions Using The Fractal Guru Strategy
- On the ADX, the dotted green should be above dotted red and the solid blue line should be steadily rising
- Look for a Candlestick with a tail pointing to a Down Arrow Fractal
- When you see this Down Arrow Fractal, enter Long.
- Place stops 5 pips below the low of the Fractal Candle.
- Exit using proper money management or upon the cross of the dotted green and red lines in the ADX.

Long Position Example 1 :

Long Position Example 2 :

Short (Sell) Positions Using The Fractal Guru Strategy
- On the ADX, the dotted red line should be above dotted green line and the solid blue line should be steadily rising
- Look for a Candlestick with a tail pointing to a Up Arrow Fractal
- When you see this Up Arrow Fractal, enter Short.
- Place stops 5 pips above the high of the Fractal Candle.
- Exit using proper money management or upon the cross of the dotted green and red lines in the ADX.

Short Position Example :

Please share your ideas about this strategy. It will be nice to make new forex friends also.

- Navin

 

[trendie]

re:
- Look for a Candlestick with a tail pointing to a Down Arrow Fractal
- When you see this Down Arrow Fractal, enter Long.

- Look for a Candlestick with a tail pointing to a Up Arrow Fractal
- When you see this Up Arrow Fractal, enter Short.

How are Fractals formed?
I thought an Up Fractal was a candlestick where a High has 2 bars either side of lower highs.

And a Down Fractal is one where a Low has 2 bars either side of higher lows.

Therefore, a Fractal will always be painted at least 3 bars in retrospect. And consequently, by the time you get a fractal signal, you are 2 bars too late.
Have I got the mechanism of fractals wrong?

EDIT: If you apply Bill Williams methodology, what you do is note the last fractal Highs/Lows, and when you get a Long signal, you buy the break of the last Up fractal, and when you get a Short signal, you sell the break of the last Down Fractal.

 

[urbanforex]

re:
- Look for a Candlestick with a tail pointing to a Down Arrow Fractal
- When you see this Down Arrow Fractal, enter Long.

- Look for a Candlestick with a tail pointing to a Up Arrow Fractal
- When you see this Up Arrow Fractal, enter Short.

How are Fractals formed?
I thought an Up Fractal was a candlestick where a High has 2 bars either side of lower highs.

And a Down Fractal is one where a Low has 2 bars either side of higher lows.

Therefore, a Fractal will always be painted at least 3 bars in retrospect. And consequently, by the time you get a fractal signal, you are 2 bars too late.
Have I got the mechanism of fractals wrong?

EDIT: If you apply Bill Williams methodology, what you do is note the last fractal Highs/Lows, and when you get a Long signal, you buy the break of the last Up fractal, and when you get a Short signal, you sell the break of the last Down Fractal.

You know what, you're right. I got my fractals wrong. Can we tune the fractals to 3 candles on MT4?

 

[blancspa]

Its very easy to spot fractals on historical data chart, in real time the small green/red arrows tend to dissapear....

 

[alan5616]

-
EDIT: If you apply Bill Williams methodology, what you do is note the last fractal Highs/Lows, and when you get a Long signal, you buy the break of the last Up fractal, and when you get a Short signal, you sell the break of the last Down Fractal.

I agree with trendie on this. That's how I understand trading signals are generated when using Fractals

 

[SVGuss]

Guys, you may want to use this indie with settings like 5, 3, 1, 3,1.
I don't know what the first parameter (5) is needed for.
Anyway, it will give you a fractl signal ASAP (because parameter "how many bars after" is set to 1).
Well, of course it will repaint but if you set the "how many bars to count before the signal" for more bars, then it can be quite reliable (I mean settings like 15, 15, 1, 15, 1 or smth like this, needs optimization for each pair and TF)
Cheers