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This is only a brief, simplified summary:
An "up fractal" or "buy fractal" is when the
market forms a high and then backs off that high for two bars. Williams
considers this to be an Elliott wave formed at some level. Similarly with
a "down fractal" or "sell fractal".
I prefer to use "up fractal" rather than "buy
fractal" because an "up fractal" is not necessarily a buy
signal. It is only a buy signal when such a fractal has formed above a
series of moving averages. The buy is a stop placed to go long just above
the high of the up fractal.
Similarly, a "down fractal" is only a sell signal (that is, go
short, not get out of a long position) when such a down fractal has
formed below a series of moving averages. The sell is a stop to go short
just below the low of the down fractal.
For a full explanation, you should check Bill William's book
New Trading Dimensions.
Hope this helps.
Bob.
At 07:34 AM 26/01/01 -0600, you wrote:
Since it takes two
trading bars before you have this "Fractal" level....how are
you supposed to trade it?
----- Original Message -----
From: Anil Chugani
To: metastock users
group
Sent: Friday, January 26, 2001 12:44 AM
Subject: FRACTALS-Formula
BUY FRACTAL:
ValueWhen(1,Ref(H,-2)=HHV(H,5),Ref(H,-2))
SELL FRACTAL:
ValueWhen(1,Ref(L,-2)=LLV(L,5),Ref(L,-2))
see attached chart
==============+==============
Robert L. Webb
Webb.Bob@xxxxxxxx
===============+=============
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