Fractal geometry is one of the best and our most favorite tools that you can use in forex market. Fractals will help you to clearly recognize wave structure of the market and find both entry and exit points. Information becomes clear immediately after fractal close, therefore it is not lagging. Using pending orders will give you a plenty of time to consider positions and remove your emotions from the equation.
What is more important, this is forex strategy using equal take profit and stop loss levels in combination with high accuracy signal. It is universal and can be applied on any market and any timeframe (above 5 min).
Entry is triggered by market situation. At the end of the trend, you simply cannot enter to the wrong market direction, because price will not surpass previous high.
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Used forex indicators
Alligator forex indicator. Settings: 52,32,20
Fractals forex indicator (default settings)
Forex strategy rules
Alligator lines clearly separated. Lined according to uptrend (from top: green, red,blue)
Bullish fractal followed by swing up into the new high. New high marked by bearish fractal.
Correction (retracement) down, cannot reach the middle of up (signal) swing. Retracement will be crowned by bullish fractal. Once this fractal closes, we place pending buy order at the high of our signal swing, with stop loss at the retracements low. Take profit equals the distance between entry and stop loss.
Alligator lines clearly separated. Lined according to downtrend (green, red,blue)
Bearish fractal followed by swing down into the new low. New low marked by bullish fractal.
Correction (retracement) up, cannot reach middle of down (signal) swing. Retracement will be crowned by bearish fractal. Once this fractal closes, we place pending sell order at the low of our signal swing. With stop loss at the retracements high. Take profit equals the distance between entry and stop loss.
Notes: If retracements moves closer to the signal swing center, before triggering the pending order, we adjust stop loss and take profit accordingly to wider retracement. If retracement surpasses middle of signal swing we cancel the order.