Chaos Fractals MT4 Stock Indexes Indicator and Chaos Fractals Indices Trading Signals

Developed by Bill Williams

A fractal is formed by three stock indexes price bars

It is used to detect the bottom or the top.

Up Fractal- defined as a middle bar with two lower highs on each side (A- shaped)

Up Fractal

Down Fractal- defined as a middle bar with two higher lows on each side (V-shaped)

Up Fractal

MT4 Indices Technical Indicator and Generating Indices Trading Signals

Break Out Trading

The break out method of using fractals to initiate trades is to take trades based on the direction of a indices price breakout above or below most recent fractal.

Buy Indices Trading Signal

If stock indexes price breaks above the most recent Up Fractal enter long.

Stop losses should be placed below the lowest low of the most recent Down Fractal or second most recent Down Fractal.

Buy Indices Trading Signal Break Out Trading

Sell Indices Trading Signal

If stock indexes price breaks below the most recent Down Fractal enter short.

Stop losses should be placed above the highest high of the most recent Up Fractal or second most recent Up Fractal.

Sell Indices Trading Signal Break Out Trading