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What is Fractal Theory?

“Fractals essentially break down larger trends into simple and predictable reversal patterns.”

The example shows this concept. At the top level, you have the basic larger trends identified by “Pivots” – a concept we heavily use in WaveTrader.

In the 2nd example, the larger Pivots are divided into smaller Pivots.

We see this again the the 3rd drawing. The idea is to trade at the Pivot Reversals when the higher Fractals are in the right direction.