Fractals by Bill Williams
Fractal is one of the most beautiful and unintelligible terms of the modern mathematics. And Bill Williams devotes much attention to fractals. In every book we can read that everything we see has a fractal structure. Leafs, earth, trees, people, roads and shore line.
A buy fractal is a series of five consecutive bars, where the highest high is preceded by two lower highs and is followed by two lower highs.
The opposite configuration would be a sell fractal.
Fractals generate the following signals:
if a buy fractal is above the Alligator's teeth (the red line), we would place a Buy Stop one tick above the high of the up fractal.
The same with selling:
if a sell fractal is below the Alligator's teeth, we would place a Sell Stop one tick below the low of the fractal sell signal.
A buy fractal is a series of five consecutive bars, where the highest high is preceded by two lower highs and is followed by two lower highs.
The opposite configuration would be a sell fractal.
Fractals generate the following signals:
if a buy fractal is above the Alligator's teeth (the red line), we would place a Buy Stop one tick above the high of the up fractal.
The same with selling:
if a sell fractal is below the Alligator's teeth, we would place a Sell Stop one tick below the low of the fractal sell signal.