Price Fractals 📚

In good hands, fractals can provide the ultimate edge for future price movements. In this THREAD we gonna explain exactly why

▪️ What are they?
▪️ Why are they so useful?
▪️ How to see them?
▪️ Can I mix different TFs?
▪️ How not to use them?
▪️ Examples

1/19
▪️ What is a fractal?

In simple terms, we could say they are the same repeating patterns over again.

They are ruled by the same principle and therefore we see the same or very similar outcomes.

2/19
▪️ Why are they so useful?

First of all, it is important to understand that fractals are so powerful cause they appear not just in the markets but everywhere around us, even in nature.

The same repeating patterns across different objects

3/19
The same thing is happening in the markets

And although prices may appear to be random at times, it actually creates repeating patterns

If our eye is trained well enough, we can use it to our advantage



4/19
▪️ How to see them?

This is the hard part. You have many options.

1) Remember them
2) Draw them
3) Print them
4) All of the above

Fractals take time & effort to spot but in return, you are given a high probability setup that fills you with confidence in it.

5/19
If you think about it fractal is also a very known pattern called the double bottom, head & shoulders, and so on.

The problem with these basic patterns/fractals is that they are commonly known and in the modern era very rarely works

6/19
Therefore we must look for at least a little more complex patterns that suit the modern era.

This is one that works well. You can call it the double-double bottom.

7/19
Here you can see the above pattern in practical use on $KAVA

Such a pattern would offer you an 80% move if you had the patience to wait for it.

8/19
The above is basically a pattern but once you get good at this you will start seeing the whole charts repeating in the same way and trust me, there are so many fractals out there.

Here is how crazy accurate they can be



9/19
▪️ Can I mix different Timeframes?

Absolutely. Many people claim you cannot compare 30 min chart with a Daily chart of a different coin. Why not I ask?

Price is fractal & therefore it works on any TF & any chart

The only rule is higher the TF, higher the significance

10/19
▪️ How not to use them?

You need to be sure the fractals are really the same & have the same features and the more same they are the more probability they have.

Here you can see how easily one could think it's like the other. And it is NOT

11/19
▪️ Examples

The above is a very complex & advanced use of fractals but these nuances are important in the overall picture.



12/19
Another important takeaway is that the fractal you find is only good for another leg, sometimes two and rarely more

After that price usually starts to deviate

The reason for that is that the overall higher timeframe chart is different for example as well as the context

13/19
The important takeaway is that price, in general, is fractal but the context of each situation matters a lot too.

These fractals can be used to our advantage but are only another edge & even the most perfect fractal can fail.

14/19
Fractals such as these can inform you about the current situation and give you more clarity.

In this example, most people didn't dare to believe we could keep going up and missed the boat.



15/19
Here is how I used #Ethereum & #Nasdaq fractal both different timeframes & different markets even.

Yet it has helped me to gain way more confidence in my setup & led me to buy #ETH as cheap as 120$



16/19
I also wanna say thank you to @visualisealpha for providing the illustrations.

We had very little time to do it but we are ready for the next round with more info.

Definitely give him a follow 🤝

18/19
I hope you have found this thread once again valuable & it will serve you well.

If you did, please consider sharing it with your friends. It takes a lot of free time to put these together & sharing costs nothing.

Thank you & bless you 🙌

19/19

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More from @jackis_trader

21 Jun
Divergences 📚

A meme or a powerful tool? It depends on how you use it.

▪️ What it is?
▪️ What type of divergences are there?
▪️ Indicator Divergence
▪️ Intermarket Divergence
▪️ The best way to use them?

1/15
▪️ What it is?

Divergence is when the price of an asset is moving in the opposite direction of a technical indicator or is moving contrary to other data

Divergence warns that the current price trend may be weakening & in some cases may lead to the price changing direction

2/15
▪️ What type of divergences are there?

There are two types:
1) Classic
2) Hidden

Classic bullish divergence usually occurs at the end of a bearish trend & vice versa

Hidden bullish divergence usually occurs in a bullish trending environment & vice versa

3/15
Read 15 tweets
19 Jun
The almighty #deathcross has nicely marked two bottoms for #DXY

If you wanna know more about this lagging indicator follow to the thread below as it is not only the case in #Bitcoin 👇

It doesn't stop there the #deathcross also marked close to the bottom of the 08 financial crisis.
The last Weekly #deathcross to this day has also marked the bottom of the #Apple stock price in 01 followed by a 42000% rally
Read 5 tweets
19 Jun
Death Cross 📚

The heavily discussed MA 50 vs MA 200 Death Cross and why it is not what they are trying to sell you

▪️ What is it supposed to be?
▪️ Is it really a sell signal?
▪️ What truly happens?
▪️ The takeaways from Death Cross?

THREAD

1/13
▪️ What is it supposed to be?

The death cross is a TA pattern indicating the potential for a major sell-off.

It appears on a chart when a simple short-term 50 moving average crosses below its long-term 200 moving average.

Indicating you should sell your position.

2/13
▪️ Is it really a sell signal?

Well, that's at least what the "puppeteer" want you to believe.

Truth be told moving averages are a powerful tool when used in the right way.

This is not one of those situations and I will show you exactly why.

3/13
Read 14 tweets
17 Jun
Fibonacci Retracement 📚

One of the most effective tools for profitable trading everyone must know.

▪️ What is it?
▪️ Why are they such a powerful tool?
▪️ How to properly use them?
▪️ Hot to define strong trends?
▪️ Advanced techniques?

1/16
▪️ What is it?

Fibonacci retracement levels are horizontal lines that indicate where Support & Resistance are likely to occur

They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced

2/16
The most commonly used ratios include 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Although you can modify them and put any number you find the most valuable for you.

In simple words, they are nothing more than a % retracement from two price points.

3/16
Read 16 tweets
15 Jun
Moving Averages 📚

💎SECRET INFO inside

🧠Great for both beginners & advanced traders

▪️ What are they?
▪️ Types of MAs
▪️ Why are they such a powerful tool?
▪️ How to properly use them?
▪️ My best SECRET EMA value?
▪️ Which Timeframe to use?
▪️ Advanced EMA technique?

1/20
▪️ What are they?

Moving average is nothing more than an average price of the last (value) of candles.

If we are gonna use an example of MA(50) it is gonna be the mean price of the last 50 candles

General rule:
Price above = Bullish 🐂
Price below = Bearish 🐻

2/20
▪️ Types of Moving Averages

1) Simple Moving Average - SMA
2) Exponential Moving Average - EMA
3) Smoothed Moving Average - SMMA
4) Volume Weighted Average Price - VWAP

There are a few more but these are the most important in my opinion.

3/20
Read 20 tweets
15 Jun
Finally, here is the new ALPHA THREAD!

1/13
A

2/13
L

3/13
Read 13 tweets

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