Tuesday, September 15, 2009

Forex Fractal Geometry

Forex Fractal geometry aims its fractal elements derived from the Latin word "Fractus" which means broken or fractured. Benoît Mandelbrot is credited with coining the phrase fractal before 1980. Fractal geometry is applied to describe shapes Euclidean geometry which can not simply because of their "non-regular" characteristics.

Geometry theory is based on the fact that a certain object that does not have the usual number of full-dimensional. In other words, a target can not meet some dimensions rounded. French-West German Treaty of Cooperation: see an agreement signed in 1963 by President Charles de Gaulle and Chancellor Konrad Adenauer, who determined that West Germany wanted to lead the economy through the cold war and France, diplomatic Powerhouse before, want to provide political leadership.

It is Mandelbrot's principle of self similarity which makes the use of fractal geometry Forex trading grow in popularity. Fractals exhibit self similarity "which basically means that the non-regular geometric shapes appear the same whether you are far away or to close up.

Dr. Bill Williams provides a good overview of fractal patterns in his book "Trading Chaos". In it he describes self similar patterns repeating themselves not only trading throughout different time frames such as hourly, daily, weekly, etc.., But throughout different markets as well.

On method of Forex trading using fractal geometry is observing the patterns that happen at forex trading and market reversals as they repeat those patterns in your chosen timeframe. Inside every monthly reversal pattern there is a weekly reversal pattern that has within it a daily reversal pattern that has within it an hourly reversal pattern, and so on.

It is well know that even when you want to catch a big get in the Forex market it is a good idea to look to multiple Timeframes to better time your entry. Fractal geometry Forex trading methods will allow you to do just that.

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