ZLBT Chats

Thursday, April 4, 2013

What is a Fractal Pattern?

What Are Fractals? 

These basic fractals are composed of 5 or more CANDLESTICKS (or BARS if you prefer). The rules for identifying fractals are as follows:

1) A bearish turning point occurs when there is a pattern with the highest high in the middle and two lower highs on each side. 

2) A bullish turning point occurs when there is a pattern with the lowest low in the middle and two higher lows on each side.

The fractals shown above are two examples of perfect patterns. Note that many other less perfect patterns can occur, but the basic pattern should remain intact for the fractal to be valid.

NOTE : What needed be on Friday is a similar looking candlestick like the one closing on Thursday but a little lower in prices. Please be reminded that there is no guarantee the GE13 factor will not be able to break-up the Fractal pattern. But if you remove the GE13 from the equation, chances of a trend reversal is very enhanced.

Can it happen? How the hell would ZL knows? I'm only a techie not GOD !!!


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