What Are Fractals?
Fractals are a standard indicator that many traders rely on, and one of their best features is that they don't redraw the last fractal. This makes them a reliable tool for identifying potential reversal points in the market.
How Fractals Work
Essentially, fractals help you spot patterns in price movements. A bullish fractal forms when there’s a low point surrounded by two higher points, while a bearish fractal occurs when there's a high point flanked by two lower points. By keeping an eye on these formations, you can make more informed trading decisions.
Why Use Fractals?
- Non-repainting: Unlike some indicators, fractals don't change their signals after they've been formed, which means you can trust the signals they provide.
- Versatile: They can be used across various timeframes, making them suitable for both day traders and long-term investors.
- Easy to Spot: Once you understand what to look for, identifying fractals becomes second nature.
Final Thoughts
Incorporating fractals into your trading strategy can provide you with valuable insights into market trends. Whether you're looking to confirm a trend or spot a reversal, these indicators can be a great addition to your trading toolkit.
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