FREE FOREX STRATEGIES

Forex trading strategy #13 (The Fractal Guru Strategy)


Hello Edward - Here is another strategy your viewers may like.

Warm Regards,
Navin Prithyani

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Time Frame : 15mins and above
Indicators : Average Directional Movement Index - ADX (Settings : 14) and Fractals

Strategy by : Navin Prithyani www.urbanforex.com

Fractal ADX strategy Forex

Background on Fractals and ADX?

ADX Indicator or Average Directional Movement Index gives you a reading of how strong the market is trending. We will use this to our favor and combine it with Fractal Indicator to pick a high probability trade. These indicators can be found by default in your indicators list on your Metatrader 4 platform. Fractals show peaks and dips. To explain it easier, a Up Arrow Fractal forms when there is a lower high on both sides of a candle. A Down Arrow Fractal forms when there are higher lows on both sides of the candle. Please note that fractals will only form when the candle closes with the given criteria of high lows or lower highs on both sides.

Understanding The Fractal Guru Strategy

When the ADX is trending by seeing the blue line rising steadily, we look for Fractals to jump in the trend. We do not take all Fractals, only the ones with tails pointing to the Fractal. Let me explain this in a bit more detail and as simple as possible with some examples. (I will also be posting a video tutorial with this to help understand this method.)

Long (Buy) Positions Using The Fractal Guru Strategy

- On the ADX, the dotted green should be above dotted red and the solid blue line should be steadily rising
- Look for a Candlestick with a tail pointing to a Down Arrow Fractal
- When you see this Down Arrow Fractal, enter Long.
- Place stops 5 pips below the low of the Fractal Candle.
- Exit using proper money management or upon the cross of the dotted green and red lines in the ADX.

Long Position Example 1 :
http://www.urbanforex.com/images/forex_strategies/fractal_guru/fractal_g...

Long Position Example 2 :
http://www.urbanforex.com/images/forex_strategies/fractal_guru/fractal_g...

Short (Sell) Positions Using The Fractal Guru Strategy

- On the ADX, the dotted red line should be above dotted green line and the solid blue line should be steadily rising
- Look for a Candlestick with a tail pointing to a Up Arrow Fractal
- When you see this Up Arrow Fractal, enter Short.
- Place stops 5 pips above the high of the Fractal Candle.
- Exit using proper money management or upon the cross of the dotted green and red lines in the ADX.

Short Position Example :
http://www.urbanforex.com/images/forex_strategies/fractal_guru/fractal_g...

- Navin Prithyani

Video Tutorial:


Edward Revy,
http://forex-strategies-revealed.com/

Copyright © Forex Strategies Revealed


Thanks for the strategy.

Very useful

hi Edward

I'm a newbie in forex and have been following your posts these days and i am really grateful for that, but i have some questions.
lets imagine that i can correctly predict a trend (uptrend or downtrend ), for example , i somehow predict that within 2 month it will be a uptrend and i open a 0.1 lot position and buy Eur/Usd at 1.0001 and after 2 month it will be 1.0900 ! in this 2 month , there will be many fluctuations, so the question is , are there any possibilities that my account get call margin because of these fluctuations, although my prediction will come true ?

Total BS! This guy just handpicked these trades. Also, he didn't even follow his entry criteria on both long and short trades -> ADX (solid blue line) should be rising. He entered while the ADX is going down for both trades. If ADX is going down, this means that the strength of the trend is getting weaker.

Hello, Please I will like to ask, which of the candle stick can one use in identifying the fractals to use, is it the Long candle or short candle. I watched the vedio and noticed that its the short candle that was used for the two illustration.. Alphabase

You need support from your broker - FXCM..?

I could not be able to see +DI and -DI in my ADX indicator. Can you help me. I am using FXCM Trading station II

The Fractal is a 5 bar pattern, so you cant really enter on the open of the second bar of the pin bar, you will have to enter on the close of the 2nd bar..
if you enter at the second the price may go down past the wick of the pin and then there will be no fractal.. This still maybe ok as a strategy but you cant back test this... unless you use the close of 5th bar..

what is fractal?
Vtops & Vbottoms with hornes and spikes?.
give me a break!!!!
You dont need a arrows to idedefine them, train your
eyes traders.
put a BB(Boliger) 20.2 and wait for piercing 10,20,50
sma and let the price kiss the frog

In some cases as I have pointed out in the attachment that the factual indicators are not shown even the tail is longer that the other side. can such candles still be taken as a signal.
thanks

Good video but your entry in incorrect. According to Bill Williams the developer of the Fractal, it takes 2 completed bars per side to establish a Fractal. In your video, you entered at the close of the first bar not the second bar. The trade still worked but your entry was one bar too soon.

strategy is simple enough and has potential. i personally always add alligator to adx and fractals to filter out the unnecessary entry and exit points...

Ragged Rat

This strategy looks great, at least i try it on Metatrader4 and got that ideia.
Maybe add Parabolic SAR or an EMA to get away from low or negative profit entrys, for example when the market is bearish or below 50+ EMA just go short..

MetaTrader4 platform has Fractals.
I'm not familiar with IT-Finanace charting package, I think you have to contact them and inquire about this indicator.

Best regards,
Edward

what charting package do you use? i m trying to find the fractual using it-finance charts but cant seem to find it though.


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