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The fractals are present at any time scale (5 min, ... 2 hours,.... day, etc.,).

Fractals are like flags installed at places were all the market participants decided not to move further. But when the fractal is broken, it is a signal that the market participants decided to move beyond the "border" created by fractal.

IMPORTANT NOTICE !!! The fractal is considered born or formed(and therefore the price level of the fractal becomes 'legal' for any calculations), only when the second bar on the right from the central had been closed and the next bar was opened.

This is a very important rule, because in this manner the market itself shows important levels inside it.

One should study the types of fractals' structures very good so as to determine them on the charts automatically himself. Today there are programs where the fractals are shown on the charts, but it is always better to know for yourself.

Here is an example of MetaTrader 4 chart with fractals marked by red ticks(grey by default):

MOVING AVERAGES(MA)

There exist several types of this indicator, namely : simple, exponential, weighted and shifted Moving Averages. In the prominent book "Technical Analysis of the Futures Markets", written by John Murphy there is a story about the Merril Lynch research group, studying the Moving Averages. In the result of their research they came to a conclusion that among all types of Moving Averages the Simple Moving Average(SMA) is the most effective and in the best way reflects the price dynamics. That is why we shall speak here only about Simple Moving Averages.

We shall use the one hour time scale as a basis and work mostly with hourly charts. In no case should this prevent anybody from using the charts in any other time scale. We shall use the МА16. Of course any trader may expirement with other meanings for his Mas.

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