Sir,
i am observing fractals as a trading strategy. but while in a choppy market fractals sends some false signal. is there any ways to reduce these signals atleast by some % as we cant avoid 100%
RogueTrader30
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@gauravsingh1238,
Hi Gaurav. Interesting qn indeed. Not all fractals are equal. So every fractal breakout or breakdown should not be traded. Fractals should be used to identify the emerging trend - up or down or range bound. Once price breaks the up fractal on an uptrend (also known as swing high) or breaks the down fractal on a downtrend (aka swing low), we should enter trade on that direction. Same applies for range bound, only that we sell at top or buy at the bottom of the range. I personally like to trade only the trending markets and stay away (protect capital) during range bound. One another idea to avoid getting whipsawed is to do the same fractal analysis on multiple time frames to see if this is a false move or a choppy market or if its a genuine trend
i am observing fractals as a trading strategy. but while in a choppy market fractals sends some false signal. is there any ways to reduce these signals atleast by some % as we cant avoid 100%