Fractal Repaints? (2024)

FAQs

How accurate is the fractal indicator? ›

The pattern isn't confirmed until the two bars on either side are formed, so there is an inherent lag to the signals you can get from fractal signals. However, once the pattern is completed, the fractal might indicate a reversal point in the market. The fractals below are two examples of perfect patterns.

Fractals are a lagging Indicator and yes, it can repaint but only within the last three bars (including the current one).

Calculating fractals has more to do with visual acuity than math. Isolate a high/low (N) point on the chart. If there are two lower highs to the left of the high or two higher lows to the left of the low (N-2 and N-1), there is a possible pattern. The pattern still needs two more bars on the right to confirm.

The basic rules for the fractal pattern are as follows: A candlestick (which will be the third, or middle, candlestick in a fractal pattern) represents a high point (with a bearish fractal) or a low point (with a bullish fractal) in the price action movement of a security.

Which indicator has the highest accuracy? The Moving Average Convergence Divergence (MACD) indicator is often considered one of the most accurate technical indicators. That is because it uses a combination of moving averages to spot potential buy and sell signals.

It was first used to draw a fractal image in 1978 and it has since been called the Thumbprint of God. The type of imagery which has emerged from a seemingly simple mathematical equation (Z=Z² +C) has astounded many people over the past four decades and its discovery has received acclaim from a BBC documentary.

It is one of the most amazing discoveries in the realm of mathematics that not only does the simple equation Z_n+1 = Z_n² + C create the infinitely complex Mandelbrot Set, but we can also find the same iconic shape in the patterns created by many other equations.

Symbolised by the character φ (Phi), it's found when a line is split in such a way that the larger part divided by the smaller part is equal to the whole part divided by the larger part -- a ratio of (rounded) 1.618.

Then, traders can use fractals to place a stop loss at a certain price point. For instance, during an uptrend, a trader can place a stop loss at the most recent low of the down fractal. This way, they will continue their long (buy) position as long as the price stays above the stop loss point.

The rarest candlestick pattern is often considered the "Abandoned Baby." This pattern is a reversal indicator characterized by a gap followed by a Doji, which is a candle with a small body, and then another gap in the opposite direction.

What is the most powerful candlestick pattern? ›

By analysing the highs and lows on a price chart, Fractals can help you determine whether a market is in an uptrend (prices moving higher), a downtrend (prices moving lower), or a ranging market (prices moving sideways).

How Accurate Are Fibonacci Retracements? Some experts believe that Fibonacci retracements can forecast about 70% of market movements, especially when a specific price point is predicted. However, some critics say that these are levels of psychological comfort rather than hard resistance levels.

Fractal mathematics cannot be used to predict the big events in chaotic systems - but it can tell us that such events will happen.

Another way to explain it might be to use Mandelbrot's own definition that "a fractal is a geometric shape that can be separated into parts, each of which is a reduced-scale version of the whole." Think of Russian nesting dolls. Fractals are common in nature and are found nearly everywhere.