The tick index may appear to be one of the simplest of market indicators, but it also offers insight into market psychology. As a stand-alone indicator, the tick index has its place in the technician's toolbox, but combining the tick index with candlestick charting, another technical method for spotting changes in market trends, creates a potent co

Money management is the most important and overlooked subject in trading!   In my opinion, the best money management system for Forex/Futures traders is outlined in great detail in Ryan Jones' book The Trading Game: Playing by the Numbers to Make Millions. In this book, he teaches 'Fixed Ratio' money management. This method he argues, will help any

Let's look at the above example 1 minute EUR/USD chart with the 'Chaos Fractal Study' added to it.   1. At 8:00 AM April 12/04 an up fractal formed at 1.2079. The price broke out above it. Buy and take a long position. 2. You could have closed your position here at 1.2090 for a 7 pip profit (including 3 pips spread) 3. If you hung on to the positio

Scalping for small profits using key levels, fractals. Scalping, or extremely short term trading techniques can be a difficult way to trade the Forex markets. Traders find it hard to be successful trading for 5-10 pips profit at a time. My observation is that scalping for small profits can work if you stick to rigid rules and strict money managemen

1. The Key Levels are extremely important. The price will fluctuate between the key levels.   2. Always open a position at a key level. +/- 5 pips (The closer to the key level the better). If taking a long position wait till the exchange rate is > the key level. If taking a short position wait till the exchange rate is < the key level.   3. A

   When I trade 1 minute Fractal Breakouts, I like to have 2 charts open on my screen. I like having a 5 minute bar chart showing the 'Ask' prices to my left (with Key Levels in red) . This gives me a bigger picture of what happened during the last hour or so. Then on the right I have my trading screen: a 1 minute chart open with the Chaos Fractal

When the Forex market is at its most active, this is the best time to trade fractal breakouts. Here is a chart that I found very helpful at the 4x made easy site. The Forex markets move the most when 3 or 4 equity markets are open at the same time. I find that the best times to trade generally are 3-6 AM EST and 8-11 AM EST. (Sometimes 11 AM-1

Ideal fractal patterns are simple in their formation and can be spotted quite easy on your EUR/USD charts. One feature of the Visual Trading platform is too AUTOMATICALLY signal up and down fractals on the chart. It does all the work for you. Here is how you can set up your charts to let the Visual Trading platform find fractals for you.

An "up" fractal, using Williams definition (Using a bar chart) is a bar high that is higher than 2 bars before it and two bars after it. The 'up' fractal pattern points "up" like a tip of an arrowhead. A "down" fractal is a bar low that is lower than 2 bars before it and two bars after it. The "down" fractal pattern points "down". Here are som

Fractal geometry has also been applied to financial markets. The observation is that the same geometric patterns show up on all chart time frames, whether you are looking at a daily chart, or an hourly chart or a 5 minute chart for example. Self similar patterns repeat themselves, over and over in the financial markets.   Mandelbrot's boo