Overview on Fractal Pattern Indicator
Fractal Pattern Indicator is the first indicator that allows you to analyse Fractal Patterns in price and time. Its concept and practical application were originally developed and researched by Young Ho Seo.
In Fractal space, price and time are the independent variables that we have to predict in our trading. The indicator is designed to predict the moves in price and time. Considering that time based strategy is rare, this is very unique indicator with full range of time analysis.
In doing so, this indicator uses the Fractal Decomposition Analysis (FDA technique was originally created by Young Ho Seo). Fractal Decomposition Analysis allows us to study the seperate Fractal Cycles in order (i.e. also known as Fractal Cycle Analysis).
The indicator will output the probability information for the future turning point projection. You have an access to this probability information for small, medium, and large fractal cycles at the same time.
How to Use Probability information for turning point prediction
Probability presented in this indicator has the same meaning as the usual one. Hence, the probability presented in this indicator will tell you the likelihood of an event happening. In this case, the event is when we will likely to have a turning point (i.e. peak or trough). Based on this, you can use this indicator for serveral different purposes:
1) Catch Extreme move in price and time using Probability Envelope Study
2) Price Based Strategy + Time Probability Confirmation
3) Time Based Strategy + Price Probability Confirmation
Catch Extreme Move in Price and Time
To catch extreme move in price and time, you will use the Envelope study provided in Fractal Pattern Indicator. When price and time stays inside Inner Envelope (68%), they indicates normal operation. When price or time moves outside Inner envelope, it could be warning state for the poterntial turning point. When price or time move outside Outer envelope, it could indicate the extreme move before the turning point.
Price Based Strategy + Time Probability
You can use Fractal Pattern Indicator together with Price based trading strategy like Fibonacci Retracement, Harmonic Pattern, X3 Pattern, Elliott Wave pattern, Supply Demand Zone, etc. When you use Price based strategy, you should use time probabililty to measure the turning point probability (= X axis of Probability Grid). Typically, time probability greater than 50% and higher is preferred before taking entries. Higher probability will increase your chance of winning.
Time Based Strategy + Price Probability
You can use Fractal Pattern Indicator together with Time based trading strategy like Fibonacci Time, GANN’s cycle, Planetary cycle, etc. When you use Time based strategy, you should use price probability to measure the turning point probability (= Y axis of Probability Grid). Typically, price probability greater than 50% and higher is preferred before taking entries. Higher probability will increase your chance of winning.
Small, Medium, and Large Cycle
In your trading, you always need to concern more than one cycle. Hence, this indicator provides you three important cycles for your trading. All these valuable information can be accessed in just one button click. For your information, scientifically speaking, probability information provided in small cycle is slightly more accurate than medium and large cycle due to availability of data.
Further Note about Fractal Pattern Indicator
Fractal Pattern Indicator can be used on its own. However, because this indicator is unique and delivering valuable probability information for your trading, you can always combine with different trading system. Following list indicators are also can be used together with Fractal Pattern Indicator.
- Profitable Pattern Scanner
- Harmonic Pattern Scenario Planner
- Mean Reversion Supply Demand
- Elliott Wave Trend
- Excessive Momentum Indicator
- Ace Supply Demand Zone Indicator
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