Fractal Indicator Strategy — Full Breakdown & Transcript

[00:14] webinar! My name is Isabela and I'm one of the VIP account managers here at I Option, and today we have another webinar. We're going to talk a little about a strategy using the Fractal indicator, and we'll get

[00:30] Fractal indicator, and we'll get to the presentation shortly. Before anything else, as usual, I kindly ask you to like, subscribe, and activate the bell on the channel so you'll be notified

[00:43] whenever we have a new webinar. So please take your time to subscribe to the channel. But let's get to our presentation. I can already see you in the

[00:56] presentation. I can already see you in the chat. Edson, welcome everyone, and let's go to our presentation. As usual, at the end of the webinar, we'll have some time

[01:13] for you to answer your questions. So, any questions you have, you can put them here in the chat, and I'll answer them at the end of the webinar. But let's go straight to

[01:26] our strategy now. Let's see some live examples. Okay, let's try to find some market opportunities and see if we can find market opportunities and see if we can find something good today. Okay, let's get to

[01:40] our presentation. I'm going to talk a little bit first about some concepts of fractals. The fractal in general, just so you know a little bit about how it works. Okay, let's go. Good afternoon

[01:56] everyone, welcome to our webinar. webinar. Basically, what is a fractal? You can see these little arrows here. Okay, basically. This is the

[02:10] Okay, basically. This is the easy indicator, and it's a price indicator that identifies reversal points. It's also a leading indicator, an indicator that we call lagging because it will only

[02:25] give you a certain signal once the candle has already formed. Okay, so the candle has already formed. Okay, so the goal is that we use it with other tools, and preferably with some leading indicator, so

[02:41] that we have a better reading of the market. Okay, and it indicates highs and lows for a certain period of time, as you can see here, the highest candles and the candles that reached the

[02:56] lowest point during a certain period of time, which we will works. Okay, let's go now. Let's talk a little about the strategy itself. It's a

[03:08] two-in-one strategy, but let's see first. We're going to use the fractal default configuration. That is, you don't need to change anything exactly as it is on the platform, just apply it. We're going to draw

[03:25] apply it. We're going to draw support and resistance lines. If you're new here and do n't know what support and resistance lines are, we already had a previous webinar where I taught how to draw these

[03:39] support and resistance lines. And also, for those who have never heard of QueOption and want to know more, there's a link in the video description where you can open your account for free. It's an account that comes loaded with a

[03:54] virtual balance for you to practice and discover how this market works, and if you're interested, you can then switch to your real account. can then switch to your real account. Okay, and then we also have three

[04:08] moving average lines, and I'll show you the configuration when we go live. I'll show you how we're going to place these lines, these moving averages. Okay, how we're going to configure the

[04:24] strategy once the slide is ready. Okay, you can take a screenshot if you find it interesting and keep it saved. When using any candle period, the expiration of the binary option must

[04:40] be 8 to 10 candles. So if we 're using 15-second candles, we'll use a 2- minute expiration. If we're using 30-second candles, we'll use a 4 to 5-minute expiration. Okay,

[04:58] 4 to 5-minute expiration. Okay, let's go to our first indicator, the fractal. The default configuration doesn't need any changes. And then we have our support and resistance lines again,

[05:11] which we'll draw according to our knowledge and our view of support and resistance on the support and resistance on the chart. And the last indicator is

[05:23] chart. And the last indicator is three SMA lines. Okay, there are several types of moving averages. We'll use one SMA. The three, in fact, are SMAs: one of 10, SMA. The three, in fact, are SMAs: one of 10, one of 20, and one of 40. I'll also show

[05:38] you how we apply these SMAs. Okay, here we have the strategy configuration. If you want to take a screenshot, you can. Okay, let's finally get started, but obviously this video will be recorded,

[05:52] so you can watch it as many times as you want. Okay, as many times as you want. Okay, When we see a green fractal here, it's showing the highest point

[06:09] the candles reached in the selected time period. We selected time period. We 'll see this later too, so it 's easy to interpret. A red fractal shows the lowest point

[06:25] the candles reached in the selected time period. Up to here, any questions? You can ask them here in the chat, okay everyone?

[06:37] understand our two-in- one strategy, which are the two ways we can trade with these indicators. So the first

[06:50] way we can trade is by trading a breakout in a trendless market. So when the market is sideways, like this example

[07:02] is sideways, like this example here, right? Sideways, we're not seeing any upward trend or downward trend. It's zigzagging. So this is our first way to trade, in which we

[07:17] can draw support and resistance on the fractals, highs and lows. Okay, as in our example here, we drew... Here's our

[07:31] resistance line, we've drawn our support line based on the fractal, okay folks? This is for a sideways market without a trend.

[07:43] sideways market without a trend. Okay, and when the market breaks above or below the support or resistance, we're going to trade the breakout. Okay, I'll we're going to trade the breakout. Okay, I'll show you here on the

[07:57] chart, this is also the first way we can trade, an example. Okay, we drew our support and resistance line, there was an support and resistance line, there was an easy breakout, okay, there's no

[08:10] secret here, I think the easiest way to trade is on the breakout itself, and we can enter a sell position, right? Once this

[08:22] candle here closed, right, broken, we enter short, okay? And as I mentioned, we're talking about an action of 8 to 10 candles, so we entered here, okay? 10 candles, so we entered here, okay? So 1 2 3 4 5 6 7 8, it would have closed

[08:40] So 1 2 3 4 5 6 7 8, it would have closed here, or 9 10, in this case it would have closed here, here, or 9 10, in this case it would have closed here, exactly here, both 8 and 10 candles later, so it would have closed in a win, in this

[08:56] case it would be a win. The same principles apply to a buy order, so exactly what happened for the sell, we're going to do the... Reading when it's a buy, right? If it breaks the resistance, we'll enter

[09:11] a buy. Okay, let's go now, let's go live, let's see what I found for you. Our first example is a trending market, so we've

[09:28] trending market, so we've resistance lines here. Right? Why did we draw them at these points? Because we have draw them at these points? Because we have here 1, 2, 3, 4, four touches in this

[09:44] here 1, 2, 3, 4, four touches in this region, and here we have 1, 2, 3, 4, 5, 6, 7, 8, 9, more or less touches in this region. So we drew our support and we drew our support and resistance based here on the fractal,

[10:00] resistance based here on the fractal, right? On the little arrows here, and waited for the breakout. What happened? It broke here. So at the close of this candle, we would have entered short. So we're talking about taking the close of the

[10:16] candle and taking its opening here at the beginning. So we're going to talk about a Du beginning. So we're going to talk about a Du 3, 4, 5, 6, 7, 8, more or less here, the

[10:28] close. In any case, we entered here, it would be a win, entering with a sell. Of course, folks, we're seeing a scenario that already... It happened, as you know, folks, we're

[10:44] talking about a risky market, always keep that in mind, okay? That's why the training account exists, so you can practice, obviously practice, see if it works, see how the market is, and so on, so that later, if you

[10:59] feel comfortable, you can use your real account. Okay, I'm here with an order that I opened yesterday that's now at a loss. Let's see how it goes until next week. In the next webinar, I 'll show you the

[11:14] result of this order. Okay, remember folks, I'm trading Forex here, so it's a medium to long- term investment. Okay, so probably next week I'll have closed your order. Okay, so we saw here, any

[11:30] questions? Okay, we drew support and resistance based on the fractals, it resistance based on the fractals, it broke here, look, the support broke here, the support, we went short. Okay, if it were a

[11:45] binary order here, for example, with shorter period candles, it would have closed here shorter period candles, it would have closed here between 0 and 10 candles, it would have been a win. Okay, folks, I saw Maria saying she can't hear me, are you

[11:59] able to? Listen to me carefully, at first I see that everyone is listening to me correctly, let me know if you're not

[12:11] hearing me correctly. We saw how to trade the first part of the strategy, in a market without a trend, a

[12:24] sideways market. Now, what we're going to see is the second way we can trade, that is, a trending market, an

[12:36] upward trend. Ah, perfect, people said they're listening to me. Maria, try increasing the volume, which should be on your equipment, okay?

[12:49] Ah, okay, let's understand now the second way we can trade in a trending market. So here we're going to use moving averages. Okay,

[13:02] let's go, and we're going to apply these and we're going to apply these moving averages: 10, 20, and 40. So, according to the color, 10 is green, 20 is yellow, and 40 is red. All

[13:17] the averages are indicating an upward trend. as a marker and a resistance point, okay? This here will be

[13:30] resistance point, okay? This here will be our resistance point. We're going to draw a resistance line, that's all, no need to do anything else. We drew a marker here on a

[13:45] a marker here on a resistance line, and when that line is broken, okay? We drew it here. This candle broke, closed, closed broken here, and then

[14:00] we'll enter a buy order. So let's see: 1, 2, 3, 4, 5, 6, 7, 8, 9, buy order. So let's see: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10. If it's the closing price, 10 candles here

[14:15] would have been the closing price. If it were eight candles here, then we entered here, closed here at this point more or less, it would have been a a

[14:31] secret here. We used this fractal here as an here as an indicator. We drew a indicator. We drew a line here, it broke, we entered long.

[14:44] line here, it broke, we entered long. Okay, and the same principles also apply to a sell order. We did the same thing, but in reverse, you can enter a sell order. Okay, let's see an example of this

[15:00] Okay, let's see an example of this second, this second, uh, trading possibility here. So here we saw a sideways market first, and here we're seeing a trending market. We

[15:16] clearly have an upward trend here. So let's understand, we used this fractal here as a marker. So our idea was, right? This

[15:28] marker. So our idea was, right? This candle here closed broken, here it is, this one... I made this line a little thicker, but basically it closed broken here. We would have entered, look, we have candles here in this

[15:42] example of 30 seconds, so 1 2 3 4 5 6 7 8. If you use a 4-minute inspiration, it would have closed here at this point. It's always eight to ten

[15:56] here at this point. It's always eight to ten candles basically, so here was a win. It would have been a win too, okay? Now we're going to

[16:08] see how to apply it. Let's open some pair here and see what the trend is. pair here and see what the trend is. 's more interesting than a sideways market. What do you

[16:24] suggest here? Open GBP/USD, let's see how it's doing. Oh, it's already how it's doing. Oh, it's already applied, it's because I saved a template here. It's

[16:38] here. It's interesting, it's

[16:50] interesting point, let's use this example. Okay, just let me show you. First, the tools we have here, I have saved them in my here, I have saved them in my templates, so we're using the

[17:06] standard fractal and the moving averages. Isabela, I don't know how to apply a moving average, let's see here, let me open a random pair. ... and remove the indicators, okay, I'm going to

[17:35] delete this one, okay? And then we'll save it again, let me find a more interesting pair, AUDCAD, let's see. Okay, let's go over it

[18:00] here just so you can see. So we have the see. So we have the standard fractal, nothing changes here, apply it, okay? standard fractal, nothing changes here, apply it, okay? And then we go to the

[18:18] moving averages, here we have a 10-point

[18:38] have a 20-point orange one, and here we also have another

[18:59] average, a 40-point red one, SMA, okay, so 10, 20, 40, apply, okay, we have all the moving averages. Ah, but here the market is very indecisive, it moving averages. Ah, but here the market is very indecisive, it 's not a good moment, it

[19:13] was in a trend, now it's zigzagging. Let's use this pair as an example, let's come here. Okay, now you understand how to apply the indicators, let's go back to

[19:26] indicators, let's go back to our example, okay? What am

[19:59] to red here. Actually, it's a trending market, you should only put a single line. Okay, but I put two so we can follow along. Okay, so we're going to consider 30-second candles with a

[20:15] consider 30-second candles with a 4-minute expiration, okay? So we check the inspiration period of the candles here. Now we have to wait for a signal, okay? It's not giving me any signal yet. If it breaks here, then it's possible

[20:30] giving me any signal yet. If it breaks here, then it's possible to go long. if we, for example, change here to 15 seconds, let's see how the 15-second candles are doing. It's not giving any signal here, just a

[20:47] not giving any signal here, just a line, right? Or here, we also have to see the overall trend. For example, if this one hasn't closed broken yet, then it wouldn't be possible to go long here. In

[21:02] that case, it would be a 2-minute inspiration. Okay, the market isn't giving us a signal yet.

[21:20] but guys, since I wasn't analyzing this timeframe, I opened this timeframe randomly. I didn't analyze what it was doing before, so I'm not going to go long now, okay? But here, for example, I would have gone long. On this candle here, I'm still going long. It's

[21:35] still giving me an upward trend. My moving averages upward trend. My moving averages here would be 1, 2, 3, 4, 5, 6, 7, 8 around

[21:48] here. It should close around here if we're going to make a move, if it works correctly, okay? Let's keep an here if we're going to make a move, if it works correctly, okay? Let's keep an enter because I haven't analyzed this market before, but let's keep an

[22:01] eye on whether it will close above here if we had entered long at this point. Okay, that's it, let's keep an eye on it. point. Okay, that's it, let's keep an eye on it. Now let me see if

[22:16] you asked any questions in the chat. Angelo asked if you can access the presentation. In this case, Angelo, since the webinar is recorded here on the channel, you can watch it again, the webinar in

[22:34] general. If you find it interesting, you can also take screenshots of each slide, which makes it easier. Let 's

[22:50] trade support and resistance with fractals. Yes, it is. In fact, the strategy Yes, it is. In fact, the strategy we used here, infallible, no strategy is 100%. So you have to take that into consideration,

[23:06] that's why I mentioned using a I mentioned using a see how many candles there would be, what our entry was,

[23:26] what the entry candle was, 15 seconds.

[23:38] stay here and see how the inspiration goes for two minutes, okay? And that's it. You can try it on the

[23:52] That's the whole idea, right? In theory, great, everything works very well. Put it into practice on the training account, see if you like it, see the percentage, the percentage of hits and misses, is it better with the strategy or not? Oh, good, that's it for now.

[24:10] I see you don't have any questions, so great. questions, so great. Remember again, like, subscribe to the channel and activate the bell because every Friday we'll have a

[24:24] new webinar, okay? So you can follow along. Anyway, suggestions are welcome, okay? You can always leave topics you want to know more about in the comments, and we'll take those suggestions and

[24:38] turn them into content for you. Okay? Thank you all for participating, and I wish you an excellent weekend. See you next Friday, bye! weekend. See you next Friday, bye!