Price Action Madness, Part 3 - 2-22-17
Price Action Madness, Part 3 - 2-22-17
Price Action Madness, Part 3 - 2-22-17
Our circulatory
system is made up
from the same type
of Fractal structure.
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Section Summary
• Fractals are just smaller things that combine to
create bigger things…..
• …and each of the smaller things is identical in
shape to the larger thing.
• We see these Fractal Relationships everywhere in
Nature.
• And we’ll also see them in Markets.
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Monthly
22
Weekly
23
Daily
24
Intraday
25
A Family of Timeframes
• Think of this as two “Parent”
Timeframes (Monthly/Weekly)
• And two “Child” Timeframes
(Daily/Intraday)
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Monthly
Chart
If we just
examine this
one swing on
the Monthly
chart…..
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Notice how a
single swing
on the
Monthly chart
Weekly
shows
“patterns” on
Chart
the Weekly
chart?
29
Daily Chart
And inside of
each Weekly
Swing we see
Daily patterns.
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Section Summary
• Fractals are just smaller things that combine to
create bigger things…..
• We define “bigger” and “smaller” with markets
based on a 5x multiplier.
• And we often (but not always) see five distinct
“waves” of the child timeframe inside one parent
timeframe price swing.
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III: Understanding
Trends with Price
Fractals
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1) Larger Timeframes
establish and dominate
the trend.
40
By understanding the
trend condition at each
Parent/Child timeframe on
the chart…..
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Pullbacks….
….vs.
Corrections.
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Potential
Reversals
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1) Larger Timeframes
establish and dominate
the trend.
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Fractal Reversals
• Trends/Reversals begin from the inside-out.
• The smallest Intraday timeframes will start the
move.
• Followed by Daily timeframes, propagating
to….
• Weekly Timeframe charts, and then finally….
• Monthly Timeframe charts.
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Questions?