How To Use The Fractal in iq option strategy

Fractal indicator  in iq option strategy

In the eyes of ordinary people, the movement of the price of candles on the chart will most likely only be seen as a random pattern. However, using (fractal), a reliable forex traders can predict what direction prices will move in the future. why can be so?

How to get a random pattern predicted using Fractals?

Practical Sense And How To Use The Fractal On The Trading

The iq option strategy of fractals essentially emphasized on the recurrent patterns that can be used to predict the traders what direction prices will move. Thus, the actual price movements on the chart is the series of fractal patterns in which if one pattern emerges then the pattern can be an indicator of which way the next pattern will continue, and so on.

The example picture above is an ideal illustration of where prices will move in a repeating pattern. The highest point of the peak and Valley marks the lowest point.

How to use Fractals is easy. First we have to find a peak or Valley first:

• an indication of bearish turning point (reversal of the direction of prices to below) is characterized      by the appearance of the highest point (peak) in the middle of two neighbouring bars with high            price lower (lower highs)

• Indication of a bullish reversal was marked by the emergence of the lowest point (the Valley) in the    middle of two neighbouring bars with low priced higher (higher lows)

Unfortunately, because we have to wait for the pattern to complete, then the obvious downside of using this fractal is lagging. That is, we have to wait for confirmation before doing the next two bars of the opening position. It could be that the two bars will last two hours or two days, depending on the timeframe. Fortunately, the reversal of the price (reversal) are already confirmed, usually lasting longer than two bars of yesteryear.

The basic principles of how to use Fractals is exactly the application on wave Elliott (Elliott Wave). The difference only lies in the process of identifying the patterns of his course.

How To Use Fractals Indicator

Fractals indicator has a variety of functions, the following are examples of some of the functions are essentially:

1. as a Trading signal

Fractals indicator not only can be used without the aid of other indicators. The bottom line, so that the indicator fractal generating trading signals is valid, then you should use other indicators as konfirmator or filter noise.

One of the indicators of konfirmator that can work well together with fractal indicator i.e. indicator alligator. See is quite simple;

• the buy Signal is valid if the peak is found above  "teeth's" line MA alligators                                         (midline red jagged).

• sell signals are valid if the Valley found under  "teeth's" line MA alligators.

It needs to be remembered, a combination of both these indicators cannot guarantee 100% success. Especially on the market condition and ranging (sideways). Note that a false signal (fake signal) could still happen though has followed the rule of reference.

To reduce the risk of false signals, it is recommended that avoid the timeframe is too low (below h1). Because of the lower timeframe, then the frequency of occurrence of the bar noise that is not valid is getting big and too often, so most likely it will also mess up the accuracy of your trading signals. Because of these reasons, the practice of using a combination of indicators and indicator Fractals alligators on or H4 timeframe D1 (daily).

2. As a tool for finding the direction of Trend - iq option strategy

Second, Fractals can be used as a benchmark in the trendline, draw a line so that you no longer need to confused to determine where the Valley (support) and peak (resistant) are significant:

From the picture above, trendline drawn from some of the Valley. Then line the trendline of that pair GBP/JPY is having a breakout from its last peak.

Conclusion

Fractals can be learned forex traders to catch the recurring patterns in the market. How to install easily, because it is already available in the trading platform Metatrader4 (MT4) on rows of Bill Williams Indicators, without the need to install a custom indicator on its own. In daily trading activity, we can use the fractal with the help of other technical indicators to find trading opportunities and find a profitable position.

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