Fractals - Trend Strength

Trading becomes so much easier with a basic understanding of market structure!

Trade example using the Trend Strength line from the Fractals (Expo) indicator + basic understanding of market structures. Trading becomes so much easier with a basic understanding of market structures. Indicators are used to confirm the current market structure. (How I see it in my trading and works for me)

Do not overtrade, we have to wait for the perfect setups. Only 3 entries today on the 1 min chart German 30.

Step by Step explanation

Cross-check the numbers on the graph below so that you understand the reasoning behind the trades.

Trade #1) - Short

Price spikes up to the Zone. The trend strength line is below zero indicating a negative trend strength. A huge Price impulse is seen in the histogram. Price is clearly rejected from the zone.

Enter Short

Trade #2) - Long

The Price has broken up from the resistance level and we assume that price will react at the level again, but now we assume it can be a support level.

The Trend Strength line is clearly above the value 0, indicating a positive trend strength. The histogram showing us a minor price impulse.

Enter Long

Trade #3) - Long

The rapid price fall draws my attention here. The price spikes down to the support level and a wick is formed. Telling me there is a buying interest. (rapid price fall + level + wick is a good sign in my opinion for entering long).

The Trend Strength Line is above 0 at this time and we are seeing a negative histogram.

Enter Long