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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:



http://forex-strategies-revealed.com/


thanks navin,

Very good strategy, I will try and tell the result. Thank you

any results yet?

hi, I'm a newbie trader and analyzing your strategy with metatrader, i find it very helpful, Thank you so much for the fractal strategy.

However, I have question:
I noticed in a 30 min time frame of eur/usd recently, in a strong downtrend, it seems there's no arrow up fractal that appears, what should be my point of entry?

Is it okey if I immediately enter when a cross happens between -DI and +DI?

What is your advised time frame?

thank you in advance.
Melchor
melchor.olivoii[at]gmail.com

Hi Melchor,

In case of absence of the required fractal when market rapidly advances, I think it might be a good idea to switch one time frame lower in order to capture a required fractal there. In fact, as you said you can launch the search for a fractal as soon as you see a cross between DI lines.

Best regards,
Edward

Hi,
Im trying this out. What do you mean when you say candle is pointing, does this mean that only one side has a shadow, or is it ok if the candle has shadows both on top and the bottom?

It is ok for a candle to have both upper and lower shadows, as long as the one that points at the fractal is, roughly, at least two-three times longer than the opposite shadow.
Just don't try to calculate it up to the pip, if a shadow doesn't seem to be long enough, simply skip it and wait for a better one.

Fractal entries

Regards,
Edward

The only ones making profits on it, is the mafia (brokers, banks, and forex systems vendors), i am tired in loosing in this financial jungle. i am in bankruptcy, with high credit cards debits