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> Chaos Fractal Indicator
Sassa
post Jul 19 2006, 06:39 PM
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Hello!

Does anyone know how to determine the exits when using the chaos fractal indicator,or is it supposed to be an "always in the market" system?

thanks!

best regards,

Sassa

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cskidmore
post Jul 19 2006, 07:14 PM
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Hello,

Taken from the Chaos Fractals indicator Notes section...

Overview

The concept of Fractals was discussed by Bill M. Williams, PhD in his book "Trading with Chaos".

According to Williams, an "up fractal" is defined as a middle bar with two lower highs on each side of it. A "down fractal" is defined as a middle bar with two higher lows on each side of it.

Interpretation

Bill Williams' book "Trading Chaos" described some basic (and advanced) concepts for trading using fractals as part of a larger, more inclusive Chaos-based trading methodology.

One simple method of utilizing fractals to initiate tades is to take trade based on the direction of a price breakout above/below the most recent fractal. If price breaks above the most recent UpFractal - enter long; If price breaks below the most recent DownFractal - enter short. Protective stops should be placed below the lowest low of the most recent Down Fractal or 2nd most recent DownFractal for long trades and above the highest high of the most recent UpFractal or 2nd most recent UpFractal for short trades.

For a full, detailed description of Bill Williams' Chaos trading methods, please refer to "Trading Chaos: Applying Expert Techniques to Maximize Your Profits" by Bill M. Williams, PhD (Wiley - 1995)

Regards,
Chris
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Sassa
post Jul 19 2006, 07:29 PM
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Hi Chris!

Thank you for your answer!

I've found this basic description, but was hoping for some more detailed information.
Did you (or someone else) read Bill William's book or study his methods of trading?

Thanks!

regards,
Sassa
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cskidmore
post Jul 19 2006, 10:07 PM
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Hello,

Unforunately, that's all the information I could come up with while researching Bill William's indicators since I don't have either of his books nor have I read them. However, I'd love some additional information regarding his Chaos indicators since I still have to write their descriptions and information on them is in short demand out on the great, wide Internet. :-)

Regards,
Chris
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Sassa
post Jul 20 2006, 10:24 AM
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Hi Chris!

OK. I'll see what i can get and will post (or mail) it immediately.

No one else interested in the chaos indicators?

regards,
Alex

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fxkar23
post Mar 29 2009, 01:34 PM
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Hello

I've been exploring the Chaos Fractal indicators for a while now. One thing I would like to make sure in the VT Chaos Fractal indicator is:

--> Are the fractals generated instantaneously or are they delayed after a certain period?

In other words, if your using a 4H chart and see a buy fractal point, is it generated right after the completion of that particular bar, or is the fractal an aftermath creation after 4 or 8 hours (4x) have past since the point where the fractal was created.

In the attached image - 4H chart for EUR/CAD, notice a sell fractal generated at 8PM on 03/26/2009 by the Chaos Fractal indicator. My question relative to this chart is

-> Would the SELL fractal point have appeared right after the close of the bar at 8PM on 03/26 OR does it appear 2 or 3 bars (4x times) after 8PM .

Chris, would highly appreciate if you can confirm this.

Thanks

QUOTE(Sassa @ Jul 20 2006, 12:24 PM) *

Hi Chris!

OK. I'll see what i can get and will post (or mail) it immediately.

No one else interested in the chaos indicators?

regards,
Alex



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cskidmore
post Mar 29 2009, 02:45 PM
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Hello,

The large "dots" are the highest high and lowest low (3rd bar) of the respective 5 bar fractals. Those "dots" are for visual reference only. The actual fractal isn't completed until 2 bars later. In other words, you cannot use those large "dots" for trading because they don't appear until the fractal is actually confirmed/completed during and at the close of the 5th bar.

Regards,
Chris
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