This means that by taking into account all these options for the development of events, you will always have a minimum of 2, or even better, 3 possible scenarios.Ī good example of the reverse is the situation that is developing in the BTC/USD market now.Īs we can see, the tail of the last element of the bull fractal pattern became the beginning of a new bearish fractal pattern.īut how do we not get confused in the variety of options when using fractal analysis?įor this, we have checkpoints, which were mentioned a lot in the previous post devoted to fractal analysis.
In practice, we often see cases of pattern mirroring (reverse order of elements) or a revolution by 180 degrees. The thing is that although the model is self-reproducing, it does not have to construct exactly in the direction as the previous one. Remembering the principle of SELF-SIMILARITY, which says that the fractal reproduces itself on different timeframes, you should not fool yourself by expecting that the fractal model recognized by you on once will move in the same direction time after time. With such a critical approach, you need to examine every detail of the chart.
If the model seems to you the only possible one, that means, you haven’t been careful and become confused by the single idea, which was forced on you by the market, or which is convenient for you personally, from a psychological point of view. I will even say more, never enter the market if you see only a single model in the chart. You should always think about different possible scenarios when applying fractal analysis. An important rule of fractal analysis is a critical attitude to the analysis of charts. It often happens, when in the same chart, at the same time, two analysts see diametrically opposite situations, and that is a norm. So, I’m going to share my personal experience of applying fractal analysis.įractal analysis is primarily visual analysis of charts, that is quite a creative process that strongly depend on an analyst’s world perception and the personal view on general situation.
CRYPTO CURRENCY RATES CHART HOW TO
In my previous posts, here and here, I told about the nature of fractals, their main elements, key levels and points.īut today’s post is likely to be the most important part this training course, as I’m going to describe, how to apply this model in practice.
This post will finish the training block on fractal analysis. I’m going to share my experience and demonstrate in practice, how to apply fractal analysis on the example of Bitcoin chart. Practical tips and application in crypto currency trading.
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