The science of Forex Fractals and Price Action: A complete guide for understanding the bearish and bullish market

by Alan Paul

The main issue with fractals is a vast number of them. They occur on a regular basis, and attempting to trade them all will quickly deplete a trading account due to lost of trade. False signals, also known as whipsaws, is a good example of this.As a result, use another indicator or method of analysis to filter the signals. The arrows of the indicator are typically drawn over the fractal's high, low, or point in the middle, rather than where the fractal ends.

The arrows might be deceptive, Because the pattern is actually completing two bars to the right of the arrow, the opening price of the third bar to the right of the arrow is the first available entry point after seeing an arrow. Traders can use the fractal indicator to identify market entry points (at the close of the fifth candlestick in the pattern) as well as price points for stop-loss orders.

With a bearish fractal pattern, a trader goes short and then places a stop-loss order above the highest high of the fractal pattern.

When a trader buys at the close of the fifth candlestick and places their stop-loss order just below the lowest low of the five-candlestick fractal pattern, a bullish fractal pattern is formed.

This guide carefully explains the fundamentals of forex as it relates to price action and fractals, when and how to go long (buy) or go short (sell) or even placing a stop loss. It also offers graphic illustrations of the bearish and bullish market. TRADE WITH CONFIDENCE!

84 pages, Paperback

Published September 15, 2021

About the author

Alan Paul's last two books have been instant New York Times bestsellers: One Way Out: The Inside History of the Allman Brothers Band, and Texas Flood: the Inside Story of Stevie Ray Vaughan. The latter has been optioned and is being developed for both documentary and feature films. His first book, Big in China: My Unlikely Adventures Raising a Family, Playing the Blues, and Becoming a Star in Beijing, is about his experiences raising an American family, forming a band and becoming an unlikely rock star in Beijing.

He also founded Friends of the Brothers, the premier celebration of the music of the Allman Brothers Band, featuring members of the Dickey Betts, Jaimoe and Gregg Allman bands. He is a regular guest on radio shows and a frequent contributor to The Wall Street Journal, Guitar World, and other publications. He lives in New Jersey with his wife, Rebecca Blumenstein. They have three children.

Please visit www.alanpaul.net or www.facebook.com/alanpaulauthor.