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Fractal - Bar Closing :::: Market: EURUSD 1Day
1. Entry rules:
Enter long at the top of a Up Fractal.
Enter short at the bottom of a Down Fractal.
2. Exit rules:
Close a position at the end of the same bar.
In this strategy we are entering the market in the direction of the current trend and we hope that the trend will continue at least until the end of the bar.
The entry point for a Long position is the peak of an Up Fractal. As you probably know a Fractal is a pattern of minimum 5 bars. For an Up Fractal to form the third bar (this at the middle of the fractal) is the one with the highest high price. That means we have at least two bars with lower highs then the top of the fractal. We enter the market when the price starts rising after the fractal pattern has been completed. So we enter long at the end of an Up Fractal in the direction of the current trend.
We will close this long position at the end of the bar (in this case at midnight).
For the short positions we do the same but in the opposite direction. First we are waiting for the market to form a Down Fractal. After that if the price drops to its bottom, we enter short. We close the position at the end of the bar.
These rules are simple to follow. When you see a fractal you can place a Stop Entry Pending Order. The order is of type “Stop” because we enter long at a higher price than the current one.
Respectively for the short positions we enter short at a price lower than the current one.