Question - Forex Forexqna Chart

Trading with fractals and EWA?

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5 Answers
Harvey Brown
Answered 3 years, 1 month ago
<p><br>Fractal markets hypothesis analyzes the daily randomness of the market through the use of technical analysis and candlestick charting. It examines investor horizons, the role of liquidity, and the impact of information through a full business cycle. The market is considered stable when it is comprised of investors of different investment horizons given the same information. Crashes and crises happen when investment strategies converge to shorter time horizons.</p>
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William Cummings
Answered 3 years, 1 month ago
<p id="isPasted">Most charting platforms now provide fractals as a trading indicator. This means traders don't need to hunt for the pattern. Apply the indicator to the chart, and the software will highlight all the patterns. Upon doing this, traders will notice an immediate problem: this pattern occurs frequently.</p><p>Fractals are best used in conjunction with other indicators or forms of analysis. A common confirmation indicator used with fractals is the Alligator. It's a tool created by using multiple moving averages. On the chart below is a long-term uptrend with the price staying predominantly above the alligator's teeth (middle moving average). Since …</p>
4 Views
Christopher Campbell
Answered 3 years, 1 month ago
<p id="isPasted">Another strategy is to use fractals with Fibonacci retracement levels. One of the issues with fractals is which one of the occurrences to trade. And one of the problems with Fibonacci retracement levels is which retracement level to use. By combining the two, it will narrow down the possibilities, since a Fibonacci level will only be traded if a fractal reversal occurs off that level.</p><p>Traders also tend to focus on trades at certain Fibonacci ratios. This may vary by trader, but say a trader prefers to take long trades, during a larger uptrend, when the price pulls back to …</p>
3 Views
Albert Buchholtz
Answered 3 years, 1 month ago
<p><br>The closest representation I can think of is Elliote Wave theory. There are a series of waves within waves that provide directional guidance on the short or long-term holding pattern of a given stock.</p>
2 Views
Richard Cross
Answered 3 years, 1 month ago
<p id="isPasted">I've never seen anyone else fractals in trading and finance.</p><p>The trouble is that a fractal is a pattern. The moment someone spots any sort of pattern in financial data, they will trade against it and it disappears. Most of the math in finance starts with with the assumption of "no trading patterns" and you end up with stuff that doesn't look very fractal like.</p><p>The things in markets either smoothing out patterns or add random (i.e. non-fractal) noise. I have seen people argue that there are power law scaling properties in the markets. It's somewhat interesting, but I haven't …</p>
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