How to Locate Forex Fractals
- 1). Use forex charting software to chart the euro over the last three months. If you don't have this software, go to Yahoo! Finance. Click on the "Investing" tab and select "Currencies." Select the currency which you're most interested in.
- 2). Work through an example. Let's work with the currency EUR/USD. Click on "EUR/USD" and then select "Basic Chart." Click on "3m" under "Range" for the three-month chart.
- 3). Identify a bearish (downward) trend or reversal. These occur where the pattern is high in the middle with two lower highs on either side (like a man peeking over a fence -- his hands are lower highs and the head is the big high).
- 4). Identify a bullish (upward) pattern. A bullish pattern is the exact opposite of a bearish pattern -- think of drawing the man upside down. You will notice one low (trough 1), and then a lower low (trough 2), followed by another low which resembles trough 1. If you have trouble spotting the fractal, dissect the chart into pieces by looking at one month at a time.