Fractals are often used by traders as a market analysis tool. The corresponding indicator is in MT4. It is in the tab “List of Indicators” (Bill Williams). Today we will look at the market situation when two-figurative candle is formed on the chart. This happens in the following case. As you know, five candles are needed to identify fractal. So, if the maximum of the average candle is higher than the maxima of the two previous and two subsequent candles, and at the minimum The middle candle is lower than the two previous two and two subsequent candles, then we have a two-fractal candle. So it may look like: I want to warn that it is always necessary to wait for the closure of the fifth candle, and up to this point not to make a trading decision. If this is not done, you can make a false entrance to the market. It is possible that the fifth candle will form an extremum, which will be higher or below the maximum or minimum of medium candle. In this regard, the two-formal candle will not be confirmed. It happens that the indicator sometimes draws two fractals before closing the fifth candle.
Trade strategy
Two-figurative candle can be considered as a signal to enter the market. The opening of the BUY transaction can be viewed if there is one condition: the upper shadow of the signal (two-finished) candle is longer than the bottom. What just just look at it to make sure that. We enter the market at the opening of the sixth candle. , respectively, to open an order SELL, the lower shadow of the two-formal candle must be longer than the top. Be sure to install Stop Loss. It must be a few points below the minimum of the middle candle (for purchase) or a few points above the maximum of a two-figurative candle (for sales).
Trade Recommendations
In order for this strategy to show a good result, some nuances should be taken into account. The purchase signal should be ignored if at the time of the closing of the fifth candle the price was close to the minimum of the middle candle (in the lower third of the range). For sale – close to the maximum of the medium candle (in the upper third of the range). If the size of the body of the middle candle is significantly higher than the size of the shadows, then it is also better to refuse to open the trading positions. It is also necessary to do if it is visually impossible to determine which of two shadows is longer. Two-estimated candle – a very simple trading method. Nevertheless, the skills are needed. You can get them on the demo score. . Inga Fedorova 27.11.2021 Record two-figurative candle. Opening trade transactions. For the first time appeared forex-for-you.ru.