789# Fractal Chaos Strategy.
Fractal Chaos Strategy is an trading system based on fractals and support and resistance levels but is an Random trend strategy becaouse the trend is an probability of random events such as fast moving averages, support and resistance levels and fractal formation.
This is an experimental template that can be freely interpreted and provides all the tools to obtain revenue levels of profit and stop loss. the model adapts to all time frames. You can also use this model to analyze market trends and obtain projections of levels to reach and levels of protection.
In reality this model can also be interpreted in a traditional way starting from the choice of the currency pair with the Powerfull currency Strength and letting ourselves be guided by the Pallada Assistant identifying the direction of the market and trading only in the direction suggested by the assistant Pallada filtered by the levels and indicators that are in the template. In conclusion this is a model that can have two Random Trend and Trend Following interpretations following the suggestions of the Pallada Assistent. What interpretation is to be followed? I advise that you can use the model to trade and analyze the market by following Powerfull currency Strength for the choice of pairs to trade and the Pallada assistant to identify the direction. When it is safe enough and you know the good how the model works, you experiment to use it in Random terms: 1) level of support and resistance, 2) fractal levels; 3) Crossing of moving averages. Often the two analyzes will coincide.
Time Frame 5 min or higher.
Currency pairs: major, minor, stock indices and commodities.
Metatrader 4 indicators:
Super Dem (Resistance and support indicator);
Quantum mod V.1 period (45);
Fractals ajustable period;
Powerfull currency Strength 28 pairs;
reversal dot ( fractals).
Trading rules Fractal Chaos Strategy.
Trend Following Interpretation.
Choose currency pairs indicating currency strength: strong currency VS weak currency.
Follow the direction indicated by the Pallada Assistant to trade.
Support / Resistance Area where the prices rebounds.
Crossing of moving averages.
Profit on SR. Initial stop loss on the previous swing high7low.
Random Trend Interpretation.
Quantum square blue color below the price.
Price goes in support area.
Fractal below the bar.
Moving Averages crosses upwards.
Profit Target on resistances.
Initial Stop loss on the previous swing low.
It is important to identify important levels of support where the price rebounds.
Quantum square red color above the price.
Price goes in resistance area.
Fractal above the bar.
Moving Averages crosses downwards.
Profit Target on supportes.
Initial Stop loss on the previous swing high.
It is important to identify important levels of resistance where the price rebounds.
We thank all those who have introduced the quantum or random analysis applied to trading on this site. Random or quantum analysis is an innovative financial market analysis method that I hope will be carried out because it is very flexible and adapts quickly to market changes.
The quantum or random analysis as Joy22 argues is not the application of the equations of quantum physics to financial markets but the translation of the concept that the chaos of financial markets cannot be examined with standardized methods but with a totally probabilistic approach, then events ( in this case the price movement) is random.