We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
Fractals; an Assistant for Locating Swings

Fractals; an Assistant for Locating Swings

2011-11-11 21:31:00
James Stanley, Currency Strategist
Share:

Fractals; an Assistant for locating Swings

By James Stanley

Traders looking to trade with market inflection points, or swing-highs and swing-lows can be doing so for a number of reasons.

Fractals; an Assistant for Locating Swings

Swings can best be characterized as market ‘inflection points,’ that are exhibited during the multiple changes in price that take place in almost every currency pair.

Rarely does a market make a clean move in one direction. Most down-trends are characterized by deeper ‘down swings,’ and smaller ‘up swings.’

Or up-trending markets can exhibit ‘swing-lows,’ as the market gyrates higher in the direction of the trend, although those swing-lows will often be at progressively higher prices, much like the chart below:

Fractals; an Assistant for Locating Swings

In our previous articles in the price action series (links available at the bottom of this article), we show numerous mechanisms that traders can use to identify trends, initiate trades, and manage positions using only price action on the chart.

Swings can best be characterized as market ‘inflection points,’ that are exhibited during the multiple changes in price that take place in almost every currency pair.

For traders looking to trade with swings, or traders looking to deepen their identification of market swings, the fractal indicator can be of great assistance.

Fractals are going to point out swings on the chart for us.

An ‘Up,’ fractal is going to be shown on candles in which the candle to the left and the candle to the right show us a higher value.

Fractals; an Assistant for Locating Swings

On the other hand, a ‘Down,’ fractal will point out those candles on the chart in which the previous and following candle display a ‘higher low.’

Fractals; an Assistant for Locating Swings

Next: Don't Miss This Tip That a Currency Pair Might be Reversing (37 of 47)

Previous: Price Action Swings

Links to additional resources:

Price Action, an Introduction

Price Action Swings

Price Action Pin Bars

--- Written by James B. Stanley

You can follow James on Twitter @JStanleyFX.

To join James Stanley’s distribution list, please click here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.