Learn How to trade the powerful Fractal Breakouts using the IFX Scalping Dashboard

Fractal Breakout Strategy

Fractal breakouts is great trading strategy! Fractals B/O are a break in market structure that provide high potential reversal points in the market.

Steps for Fractal B/O  Strategy

1. Set up the IFX Scalping Dashboard to only show the M15 Fractal, YH, YL, ADR & RSI for H4 with 60/40 levels. (You could add the M5 fractal if you wish).

 

2. Analyze the pairs that have highlighted YH, YL & ADR to look for possible Fractal Breakout entries.

 

4. Option 1 entry: One approach is to enter on M15 LEFT fractal breakouts . 

 

To implement this strategy, first ensure that the price has reached Yesterday's High (YH), Yesterday's Low (YL), or the Average Daily Range (ADR) before looking for fractal breakouts. At the time of entry, confirm that the RSI in H4 is within the 60/40 range. 

 

Refer to the 60/40 RSI Rule Strategy.

 

5. Option 2  entry:  Alternatively, you can enter using the Left or right M15 fractal breakout. 

 

Similar to Option 1, verify that the price has reached YH, YL, or ADR levels before looking for potential trade setups. 

In addition, make sure the RSI is within the 60/40 range at the time of entry. This combination enhances trade signals by providing additional confirmation of market movements.

 

 Key Benefits Of Trading The Fractal B/O Strategy

Adaptability

 

By offering two distinct entry options, you can choose the method that best suits your trading style and market conditions. This adaptability enables you to take advantage of various opportunities, whether relying solely on fractal breakouts or combining them with Reversal or Trend Block alerts for added confirmation.

Enhanced trade precision

 

Both strategies focus on specific market conditions, such as the price reaching YH, YL, or ADR levels, and the RSI being within the 60/40 range. This attention to detail allows you to identify high-probability setups more accurately and execute trades with greater precision.

Improve risk management

 

By identifying precise entry points through fractal breakouts and Reversal or Trend Block alerts, you can better manage your risk exposure. These strategies enable you to set more effective stop-loss and take-profit levels, minimizing the potential for loss while maximizing potential gains.

Here's an example of utilizing an M15 LEFT Fractal Breakout alert with the 4H RSI 60/40 Rule. As the M15 Fractal B/O alert occurs after it has hit YH,  simultaneously  the H4 RSI is below the 60 level giving out the confirmation for a potential reversal entry. This combination of signals enhances the likelihood of capturing a successful trade.

Here's an example of the H4 Chart showing where the M15 Fractal Breakout alert happened. It's important to know where the RSI direction is coming from to make better decisions. 

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