Friday, September 12, 2008

Focus on Fractals




 I have done some closer examination of fractals and how they can contribute to my trading. The longer time frame fractals are the ones that I should focus on more, then scale down to smaller time frames. It seems that many times I had been looking for wicks and not really picking out the true points of price sensativity. If I look at the opening and closing of certain candles, especially in groupings along with wicks that are rejection candles I will find where a few candle wicks line up with the full bodied candles and show me exactly what the rejection candles are having trouble with. A clear example of this is the USD/JPY chart (4 hr) where support was seen for 16 hours and then committed below. After that closing, it rallied to the true key area and a trade set up was in play. After looking at the 4 hour chart, a true entry is found with my tools on a smaller time frame.(15M)