Intro To TTrades Fractal Model [Indicator & Settings]

How's it going everyone? This video is going to be a basic introduction into my fractal model.

However, the main focus of this video is going to be going over my indicator and its settings and how it is used.

So let's hop into the first example here to explain the fractal model and then how the indicator would plot it.

So my fractal model relies on the foundational understanding that the market cannot reverse without a swing point.

So you can see here the market has formed a swing point to reverse or go from bearish to bullish and if we are going to reverse from bullish to bearish we are also going to form a swing point.

Now what do I use to determine if the market is likely to reverse? I will use candle closures.

So you can see here price has swept out its previous candles high and then closed back inside the range.

So if you've seen my daily bias video, you know that I would be bearish or looking for previous day low.

So with that understanding that I'd be looking for a previous day low or a run lower this next day, I'd be looking for an open high low close.

Now to confirm this bias, I would go down to the hourly timeframe from the daily and look to see if we have a change in the state of delivery.

So down here on the hourly chart, do we have a change in the state of delivery confirming the swing point?

Well, you can see we have closed through the series of up-closed candles that have made this high.

So I consider this high protected, and then I will look to trade the open, high, low close in the following candle.

So you can see here, as we let this play out, you can see we reach higher, we sweep out a high to the left, and then we get an opposing candle formation here.

So I'd anticipate this wick to have formed, and then I can look to trade this lower the rest of the day.

So I could either get on side in this next candle here, or in this hourly candle, or wait for a New York session.

So you can see here as we approach the New York session, what happens? We sweep out this high to the left.

We then close through the down close candle that made that high.

So if I wanted to put on a position, I could put on a position on the close of this candle, my stop on the high,

and looking for 2R. Let's see how this works out.

So it makes us wait some time, but we do hit RTP on that trade.

So just to review the foundational concepts within the fractal model,

a higher time frame closure, in this case price swept out its previous day high, and closed back inside the range.

We have a change in the state of delivery that confirms that reversal.

And then in the following candle, I'm looking to trade the open high, low close,

is that is what is determined by my higher time frame bias. So you can see here, this is how I would mark it out.

Now to make this more efficient for myself, with the help of two degrees, I have designed my own indicator to mark this out all for me.

So let's go ahead and re-walk through this price action, but with my indicator.

So you can see on this new candle close, it has identified that it's taken the previous day's high, closed back inside the range,

and is also paired with a change in the state of delivery. With this, it will mark out projections to give myself targets, as well as mark out a T spot, which is an area that I look for higher time frame wicks to be formed.

So for instance, if we are going to trade lower here, I would like to see price trade into this gray area, form a high or a higher time frame wick, and then trade lower throughout the day.

As we let this continue out, this is when I would then mark up my opposing candle formation, and I would like to see this trade lower throughout the day.

and you can see as we get into the next day here because

we have closed bearish I would then look for a continuation in

this following candle if we let this play out you

can see we do get this continuation lower

and then we finally go and

take out these lows to our left so you can see that is what my indicator looks like now let's go back and take a look at this New York session setup where we have swept out this high here.

Since my model is fractal, hence the name of the fractal model, I can apply this on multiple time frames.

So here we are on the daily and hourly, but let's say I wanted to go in here on the hourly and five minute.

I could go ahead and rewind this, drop down to the five minute time frame, and the indicator would auto adjust for that.

So you can see we've taken out this high. If I had a bearish bias, I could go ahead and switch this to bearish and it'll only seek out the bearish setups.

And then as I let this continue here, we get this higher timeframe candle closure, the five minute setup.

And then I'm anticipating the higher timeframe wick to form in this area to trade lower. So as we let this play out,

you can see we respect that area, and then we get a continuation there to the lows to the left, and to our standard deviation projections.