To generate buy and sell signals, the turning point prediction method consists of two steps including the turning point probability and fractal cycle analysis. In fact, the turning point probability and fractal cycle analysis are integrated in the calculation phase of this turning point prediction method. Several terminologies can describe their application. We ordered the terminologies by their word length.
Quantified price action
Fractal wave modelling
Stochastic cycle modelling
Geometric analysis combined with statistics
Peak and trough analysis combined with statistics
Fractal decomposition or Fractal wave decomposition
Price action combined with math or mathematical price action
The above terminologies can be applied to describe the application of the turning point probability and fractal cycle analysis in real world. However, some of the terminology can appeal more to different audience. For example, “stochastic cycle modelling” might be more appealing to the forecasting scientist as they knew some data are more complex beyond the deterministic cycles. Likewise, for the day trader, “price action combined with math” or “mathematical price action” might be more appealing to them if they heard about the price action. Especially, the term “geometric volatility” might provide a lot of insight behind this prediction algorithm to mathematician, even though they have not read this book at all.
Whichever the terminology is more appealing to you, the purpose of the turning point probability and fractal cycle analysis is to predict the highly complex data like the price series in Forex and Stock market. Although we have introduced many usage examples of the turning point probability and fractal cycle analysis in this book, we have provided much simpler guide for the day trading past two years. In the day trading, the trader requires to do multiple tasks in short period of time. Hence, the simple and effective decision making is important for their trading operation. To provide the simple but powerful prediction method, we recommended using the turning point prediction with support and resistance in the technical analysis. Support and resistance are often used when the trader wants to find out breakout or reversal trading opportunity at the specific price level. This technique is typically considered as the market reaction strategy when they are used on their own. In this market reaction strategy, the trader uses the support resistance to find out the direction in which the price is getting pushed by the crowd. So, around support and resistance, we can have both reversal and breakout trading opportunity depending on the buying and selling volume created by the crowd.
When the support and resistance are combined with the turning point probability, the market reaction strategy now becomes the market prediction strategy. The market prediction strategy means that the trader can anticipate in which direction the price can move at the support and resistance. For example, instead of waiting to see some significant price movement in one direction, the trader can predict the price direction even before the price approach near the support or resistance.
In this video tutorial, we will demonstrate how to predict Forex market with Fractal Wave or Fractal Cycle Analysis. In addition, this video includes the data export tutorial for MetaTrader 5 platform.
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