Fractal S&R Strategy V1.2 by InvisibleMyth
By InvisibleMyth
Performance Metrics
- Author: InvisibleMyth
- Symbol: EIGHTCAP:XAUUSD
- Timeframe: 15 minutes
- Net P&L: +2.31 USD (+0.25%)
- Win Rate: 49.9%
- Profit Factor: 1.015
- Max Drawdown: 161.67 USD (13.95%)
- Total Trades: 1,320
Description
This strategy, called Fractal S&R Strategy V1.2, is a price action trading system that uses fractals to identify key support and resistance levels, then executes trades based on how price reacts to those levels. Instead of relying on traditional indicators alone, it focuses on market structure and behavior, assuming that price tends to bounce from support and reject from resistance. When a fractal high is detected, it marks a resistance level, and when a fractal low is detected, it marks a support level. Importantly, the strategy uses the candle body (open and close) rather than the wick to define these levels, which helps reduce noise and create more reliable zones. These levels are then visualized as white dotted horizontal lines extending into the future.The strategy does not enter trades immediately when a level is formed. Instead, it waits for price to come back and interact with the most recent support or resistance. A “touch” occurs when price reaches or crosses the level. However, touching alone is not enough to trigger a trade. The system requires confirmation from the next candle to validate the reaction. For a buy setup, the previous candle must touch the support level, and the current candle must be bullish, indicating that buyers are stepping in and pushing price upward. For a sell setup, the previous candle must touch the resistance level, followed by a bearish candle, with an additional condition that the closing price is below the resistance level to confirm rejection rather than a breakout.Once these conditions are met, the strategy enters a trade in the direction of the expected reversal. Risk management is handled using a fixed stop loss and take profit. For buy trades, the stop loss is set below the entry price and the take profit above it; for sell trades, the opposite applies. The predefined values create a risk-to-reward ratio of approximately 1:2.5, meaning the potential reward is significantly larger than the risk. Overall, the strategy is built on the idea of trading reversals at key levels with confirmation, aiming to avoid false signals and improve trade quality by combining structure (fractals), level interaction (touch), and momentum confirmation (candle direction).