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
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
More View more
Real Time News
  • Just a reminder, the White House's deadline on the auto tariff decision is due today after the extension. Stay on Twitter watch. Trump seems to like make big calls shortly after the close...
  • Heads Up:🇳🇿 NZD BusinessNZ Manufacturing PMI (OCT) due at 21:30 GMT (15min), Actual: N/A Expected: N/A Previous: 48.4 https://www.dailyfx.com/economic-calendar#2019-11-14
  • RT @ABehsudi: Commerce is expected to extend a limited, temporary waiver for blacklisted firm Huawei, notwithstanding any last-minute direc…
  • RT @zerohedge: POMO is temporary, they said. It's just a mid-September tax payment, they said https://t.co/nBeHAZ9kJc
  • $MJ: Pot stock market caps going 'up in smoke' https://t.co/q3v88TVO93
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: France 40: 0.19% Germany 30: 0.11% US 500: 0.02% Wall Street: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TtF93qmxed
  • Oh, team building exercises. I'm sure that brought Knot and Holzmann around to dropping concerns about diminishing returns on negative rates and extreme monetary policy... https://t.co/5lpgsAJtbC
  • Update on #Cryptocurrencies #BITCOIN -1.15% #BITCOINCASH -2.47% #ETHEREUM -1.87% #RIPPLE -1.87% #LITECOIN -2.84%
  • RT @CNBCnow: BREAKING: The 50 attorneys general investigating Google are preparing to expand their antitrust investigation beyond the compa…
  • remaining operations will include 14-day with $35b offering
Fractals; an Assistant for Locating Swings

Fractals; an Assistant for Locating Swings

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

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.


News & Analysis at your fingertips.