All You Need In Forex Is To Master The Art Of Fractals On Charts
Most important thing for a Forex trader is to know when the market switch direction between bullish & bearish, each time the market switch direction on our charts we get a Fractal. Fractals on bigger time frame are more effective as they reflect the central banks long term money policy plan, For example EURUSD fractal at 1.39 declared the fall which still increasing till now.
We notice on monthly EURUSD chart a fractal formed after 3 candles showing a potential down fall & as long this resistance level in this fractal been respected the market will keep on pushing down & we all know what happened on EURUSD chart & how price kept on increasing down till now & for the market to switch direction on EURUSD from bearish to bullish we need to see on monthly chart a fractal from deep declaring the formation of a strong support level which might take EURUSD price up again... Till then EURUSD is on the fall based on last Fractal on Monthly EURUSD chart.
Also we have fractal patterns which help us to know the sentiment of the market if it's switching from bullish to bearish or from bearish to bullish on all time frames, by forming & reinforcing a support level or a resistance level for the price in the market to make it's move.
The Fractal patters which form resistance levels declaring a potential fall are easy to spot on your charts. All you need to do is to zoom out your candles chart to see those patterns & they will help you know what the market is down & you will hunt potential movies after with better accuracy as a brave Forex Trader.
On this pic above we can see the Fractals patterns which declare a potential falling move, where we wait for the price to pass it down to enter the market by placing stop loss on the top head of the Fractal formation which been painted on our charts strong as another resistance level.
Double top, head & shoulder, morning start in reality they are Fractal patterns which repeat always on our charts & a trader with experience is familiar with those patterns which allow him to take better trade decisions in the arena of Forex, yet only few know that they are simple Fractal patterns.
On the other hand we have the Fractal patterns which form strong support levels, as double bottom, head & shoulder... all those patterns also they are Fractal formations on our charts which allow us to hunt better decisions in the Forex market as profitable trades based on the formation of another strong support.
Most important rules in Trading to guaranty your success is to master also risk managements strategies & from my humble experience in Forex i end-up following this list of risk management rules during my daily trades.
1- never to open a second losing trade.
2- to cut loss always small & never let it grow to become a big lost
3- never risk more than 2% from your account & 2% as risk is enough to generate 1% profit per day.
Happy Trading.
