Hi, I want to share about a really work Fractal Breakout strategy. Basically, I use Fractal and Fibonacci as the profit target. There are many tutorial on website or YouTube showing Fractal Breakout strategy. Basically this strategy is based on them but I do not want to use Alligator to confirm the breakout. I use 50 Exponential Moving Average.
Basic technique of this Fractal Breakout strategy:
This is a trend following trading. We tried to catch the trend at the beginning. The price has break the EMA 50 and then it create a fractal. This fractal is used to catch the breakout. If price not break the EMA, we do not take the trade and wait patiently.
On the chart above we clearly see the price break the EMA50 downward and create a fractal and then it retrace up again. This fractal is our key signal to go short. If the price move down again and break this fractal, the target 161.8 Fibonacci will be hit. Next time I will post another example.