Fractals in trading: basics and examples

Fractals are structures that repeat at different scales, and they can be a useful tool in trading. In the context of the market, fractals help identify reversal points based on previous price movements. They consist of five or more candles, where the middle candle is a peak or trough, and the two adjacent candles are higher or lower than it. The use of fractals helps traders accurately determine entry and exit points, increasing the likelihood of successful forecasts. One popular method is the combination of fractals with trend indicators to filter out false signals.