Fractal Breakout Strategy part 3 - How to use them on intraday trading

Summary

Peter from experttrading.co presents a tutorial on utilizing fractals for breakout trades on shorter time frames. He explains that while he doesn't trade fractals directly on daily charts, he uses them for trend confirmation on smaller timeframes. Peter demonstrates how to identify entry points after a fractal breakout, emphasizing the importance of aligning with the trend and using pivot points for trade signals. The video aims to clarify his trading approach and offers practical examples for a better understanding of fractal trading strategies.

Takeaways

• 📈 The video is about using fractals for breakout trades on shorter time frames, as opposed to higher time frames covered in previous videos.
• 📊 Peter from experttrading.co explains that he doesn't trade fractals on the daily chart but uses them for trend confirmation on smaller time frames.
• 📉 He emphasizes the importance of not trading against the trend, and how fractals can be a confirmation tool for trades in the direction of the trend.
• 🔍 Peter demonstrates a specific example where a fractal breakout above the alligator indicator line on the daily chart signals a potential long trade on a shorter time frame.
• 📆 The example given is from March 30th, showing a fractal breakout that could have been used to enter a profitable trade.
• 🧭 He mentions the use of pivot points and the 50-period moving average as part of his trading strategy, especially in a downtrend.
• 🚫 Peter advises against taking a short trade when the fractal has been broken the previous day, indicating a potential uptrend.
• 📍 He illustrates how to enter a trade when the price closes above the pivot point, following a fractal breakout.
• 💰 The video includes a practical example of a profitable trade made by using fractals and pivot points, with specific entry and stop loss points.
• 🔑 Peter concludes by highlighting the usefulness of fractals for early entry into a trend and riding it for profit.
• ✉️ The video ends with contact information for further inquiries and resources on experttrading.co.

Q & A

What is the main topic of the video by Peter from experttrading.co?

The main topic of the video is how to use fractal breakouts on shorter time frames for trading.

What was the reason Peter decided to make this video?

Peter decided to make this video after receiving an email from someone who enjoyed his previous video but couldn't see how he applied fractals to take trades on daily and 4-hour charts.

Why doesn't Peter take trades on the daily chart as fractals?

Peter doesn't take trades on the daily chart as fractals because he uses them as confirmation of a new trend or long/short positions on a smaller time frame.

What is the significance of the fractal breaking above the red alligator line according to the video?

The fractal breaking above the red alligator line signifies an up fractal, which can be a confirmation to take a long trade on a shorter time frame.

What does Peter suggest about trading against the trend?

Peter suggests that it's generally advised not to trade against the trend, as the trend is your friend, and trading with the trend can be more profitable.

What is the purpose of using fractals in trading according to the video?

The purpose of using fractals in trading is to get in early on the start of a trend and ride it for profit.

What trading strategy does Peter mention for shorter time frames after a fractal breakout?

Peter mentions using pivot points as a strategy for trading on shorter time frames after a fractal breakout.

How does Peter determine the entry point for a long trade after a fractal breakout?

Peter determines the entry point for a long trade by waiting for the price to close above the pivot point and then take out the high of that bar.

What is the importance of the 50 period moving average in the context of the video?

In the context of the video, the 50 period moving average is not used for trading off when the market is in a downtrend, unlike the pivot points strategy.

What is the recommended stop loss placement according to Peter's example in the video?

Peter recommends placing the stop loss at a significant low, in his example about 20-25 pips away from the entry, which would require breaking the pivot and the daily low to reach.

How can viewers get more information after watching Peter's video?

Viewers can get more information by contacting Peter at [email protected] or visiting his website at experttrading.co.