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The use of the Fractals indicator proposed by Bill Williams in binary options trading allows to significantly increase the trading performance. With this convenient tool, it is easy to identify the tops or bottoms on the candlestick chart of assets that provide traders with bright signals for concluding promising transactions.
Download the Fractal indicator: description and application in trade
The Fractal technical indicator in the classic description is a collection of 5 candles on a value chart. The presence of an average candle with a maximum or minimum value will be a prerequisite for determining this signal. Fractals act as peculiar extremes on the time segments of the graphic display of the asset value.
This analytical tool has nothing in common with the Fractals theory, which is used by mathematicians. It is needed in order to define the most advantageous positions for sealing the deals. You can easily download the Fractal indicator on the trading floor in order to apply it when trading.
Types of levels by Fractals in indicator
There are two basic types of such financial tools:
In this case one out of five candles is located above the others, which are located on both sides. The fact that the asset value goes beyond the Fractal levels by just one point is an indicator of a breakthrough for buyers.
Bill Williams in his theory stipulates that if the maxima are visible in 2 consecutive Fractals at once, then when calculating the second one is simply not taken into account. Also, an optional condition is that all subsequent candles after the maximum indicator are sequentially reduced. There may be a two-vertex figure on the chart, but the second “peak” will be significantly smaller than the main one.
If 5 candles are observed on the value chart, and one is located one point lower than those surrounding it, this position is called the “Down” Fractal. It will be a bright signal of a breakthrough for sellers. For this tool, similar additional conditions apply, as when evaluating the Fractal directed upwards. Using the Fractals indicator on the sites of Binomo or other brokers, you can trade various assets much more successfully.
Fractals: how to use indicators without redrawing?
Tracking changes in Fractals – characteristic indicators on candlestick charts of changes. Before using them, you need to understand the essence of this theory. Bill Williams describes the use of Fractals in breakout strategies. Above these points, the levels of opening or closing positions are determined, allowing you to more effectively trade binary options with different types of assets:
- financial indicators;
- currency pairs;
- and so on.
Such signals are used in stop-loss operations, which are set at the extreme points of the remote multidirectional extremes of Fractals on the chart. In most cases (but not necessarily) users are guided by the penultimate oppositely directed signals. For sales, stop-loss is set in the place of the maximum values of the last 2 Fractals. When determining the position of a stop loss for a purchase, it is set at the minimum values of the 2 extreme Fractals. Using the Fractals indicator without redrawing, you can effectively determine the places for placing trading positions.
The use of such informative indicators in forecasting makes it possible to increase the profitability of operations with binary options.