Fractals are a popular tool used in forex trading to identify potential price reversals in the market. A fractal is a pattern that appears on a chart and consists of five consecutive bars. The first two bars must have higher highs, while the next two bars have lower highs. The fifth bar must have a lower high than the previous four bars. This pattern helps traders identify potential turning points in the market.
If you are interested in using fractals in your forex trading, the first step is to find them on your chart. There are several ways to do this, depending on the trading platform you are using.
MetaTrader 4
MetaTrader 4 is one of the most popular forex trading platforms, and it includes a fractal indicator that is easy to use. To add the fractal indicator to your chart, follow these steps:
1. Open a chart for the currency pair you want to trade.
2. Click on the “Insert” menu at the top of the screen.
3. Select “Indicators” from the drop-down menu.
4. Click on “Bill Williams” and then “Fractals.”
5. The fractal indicator will appear on your chart.
You can adjust the settings of the fractal indicator by right-clicking on it and selecting “Properties.” From there, you can change the number of bars used to identify a fractal and the color of the fractal markers.
TradingView
TradingView is a popular charting platform used by many forex traders. It also includes a fractal indicator that is easy to use. To add the fractal indicator to your chart, follow these steps:
1. Open a chart for the currency pair you want to trade.
2. Click on the “Indicators” button at the top of the screen.
3. Type “Fractals” into the search bar.
4. Click on “Fractals” from the list of results.
5. The fractal indicator will appear on your chart.
You can adjust the settings of the fractal indicator by clicking on the gear icon next to the indicator in the “Indicators” menu.
Other Platforms
If you are using a different forex trading platform, you may need to search for a fractal indicator in the platform’s library of indicators. Some platforms may not have a built-in fractal indicator, in which case you may need to download a third-party indicator or use a different tool to identify fractals on your chart.
Conclusion
Fractals are a useful tool for forex traders looking to identify potential turning points in the market. Most trading platforms include a fractal indicator that is easy to use, making it simple for traders to incorporate this tool into their trading strategy. If your platform does not have a built-in fractal indicator, you can search for one in the platform’s library of indicators or download a third-party indicator. With fractals, traders can gain a better understanding of market trends and make more informed trading decisions.
