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The fractal channel
This interesting channel is created by connecting the upper and the lower fractal points. Fractal points are considered decisive points in the chart, marked by a typical candle pattern.
The Fractal Channel is an original take on support and resistance. Support and resistance levels are formed when the market fails to break through the fractal levels. When the market moves above a resistance level, it is a buy opportunity. When the market drops below a support level, it is a short sell opportunity.
These are the advantages of the fractal channel:
- Can be used on all instruments.
- Can be used in all time frames.
- Gives buy and short sell signals.
- Gives a good number of signals for day traders.
- Is easy to understand.
This example shows a bullish fractal channel. Several buy signals are visible.
This example shows a bearish fractal channel. Several short sell signals are visible.
The Fractal Channel guarantees the trader a straight-forward trading approach with plenty of signals, both buy and short sell.
Trader tip: insert the Metasentimentor to see the signals. Activate AutoOrder for automated trading.
Open the chart of the instrument you wish to trade. In the WHS Proposals folder, select the study fractal channel tool.