Todd Mitchell – Fractal Energy Trading
How much more money could you make if you knew – with defined certainty – what direction the market is moving at any given time?
Now, of course, plenty of tools and indicators promise this knowledge.
But how well are they working today?
My guess is that you’ve probably noticed some problems lately.
You see, with today’s stretched financial markets, trends go a long time without meaningful pullbacks.
Price rises faster now than it corrects. This is a fairly recent development, as for years we saw choppy, slow-moving price action.
The shift puts a strain on popular indicators such as Stochastics, MACD, and RSI, which were created decades ago for markets that are much different than they are today.
For example, RSI was developed by J. Welles Wilder and popularized in the 1978 book, New Concepts in Technical Trading Systems. Stochastics was created by George Lane in the 1950s.
Markets have changed considerably since this time. So why hasn’t the process for analyzing and predicting movement changed?
The fact is, the information that traditional indicators provide now isn’t always clear and is often lagging well behind the actual movement.
Sometimes it’s just plain wrong.
What Caused the Market Shift?
Today’s shifting market is the result of a measure we’ve seen debated in major media over and over the last few years …
Or, simply put, in an effort to lower interest rates and spur economic growth, new currency has been thrust into our nation’s money supply. The Federal Reserve is still injecting billions of capital every month in an effort to further stimulate the economy.
In fact, since September 2008, Financial Times reports the U.S. Federal Reserve’s balance sheet has expanded by $3.5 trillion!
As you can see, this financial activity has gone on for years – and shows no signs of stopping. So it was inevitable that this “new” money would hit the stock market.
And little did anyone know what kind of impact this would have on trading.
But in 2013, Traders Worldwide Started Feeling the Effect.
The problem, though, is that few recognized the shift when it happened.
(And if they did, since they couldn’t pinpoint the problem, they continued relying on the same strategies and tools – ones created for markets that are much different than they are today.)
I was one of these traders … looking at charts … using many of the same indicators you probably use … searching for patterns … and noting certain trend-lines.
I labored over seemingly every trading resource. I noticed, though, I wasn’t getting the same results – with the same ease – as I did in previous years.
In fact, one of my once-reliable trading method broke in 2013-14.
… and so did everyone else’s.
As much as I can estimate today, continuing to rely on traditional indicators cost me at a lot of money in lost income.
Of course, it’s impossible to put an exact number on my lost profits. But because I was reluctant to stray from strategies that created such a successful trading and training business, I lost considerable income during this period.
I don’t want you making the same mistake – that’s why I’m sharing these findings.
Don’t Wait to Give Yourself This Advantage.
You see, I should have made a change much earlier.
The fact is, a few years prior – while going over research I’d compiled for the past 10 years – I saw something different in my charts … something new.
It sort of just popped out at me. Like when you look at those autostereograms – you know those 3D images that appear once you know how to look at them.
Stereogram Tut Random Dot Shark by Fred Hsu is licensed under Wikimedia Commons
Suddenly, I saw a concept with the power to make incremental improvements in predicting market movement. (I just didn’t know it at the time.)
The more I tested my theory, the more I learned it was the key to reading today’s markets … the ones distorted by government intervention.
What I saw that day were fractal patterns …
Repeated configurations that display at every scale. From trees and rivers to clouds and seashells, nature is filled with these never-ending patterns.
Fortunately, the markets share this natural phenomenon too.
Now, again, this isn’t just some idea I’ve been kicking around. I’ve been testing this theory for years …
To the point that now I’ve incorporated the principle into every level of my trading. And it’s become my main method for analysis and reducing risk.
How the Process Works …
Look, trading success is a combination of careful research and timing.
While it’s impossible to reveal the entire Fractal Energy Trading process here, let me give you two simple rules so you can use them to better trade today:
Larger time-frames establish and dominate trends.
Reversals start from the “inside out” with smaller time-frames, and propagate to larger ones.
What’s this mean?
Well, price action works in multiple time-frames, almost like a “family.” Trends in the smaller time-frames eventually move to the larger time-frames.
For instance, the trend might begin at an intra-day chart … then move to daily … then weekly … then monthly … and so on…
Again, these patterns repeat.
When you look at the right relationship of these time-frames, you see markets like a “puzzle” that you simply need to piece together.
In fact, When You Know How To Go Into Any Trading Situation & Identify the Fractal Patterns, You Can Positively Predict Almost Any Movement On ANY Time-Frame!
Which brings me to one more point …
Energy also comes into play. This “energy” tells you how far markets are likely to trend.
When you know how much energy each time-frame has, you know the overall potential of the chart to trend or consolidate.
To make this recognition even easier, we use a little-known indicator called the Choppiness Index.
Above 61.8 = price is coiled and ready to trend
Below 38.2 = the trend is in danger
Below 25 = the trend will fail shortly
Look at the Fractal Energy chart below:
On all timeframes, the Choppiness Index Indicator tells us price is coiled up, tight like a spring and ready to make an explosive move.
We take this information to set up our trading strategies and stay ahead of the move.
… that’s how you position yourself to profit BEFORE everyone else.
Now look at this chart:
Here we see the two smaller time-frames on the right signaling that the trend is in danger, while the largest time-frame on the left is meeting up against resistance.
Opportunity is written all over this chart!
As you imagine, when you have this knowledge, you dramatically simplify your chart analysis and increase your odds of successfully reading the market.
That’s why I give you the Choppiness Indicator as a FREE BONUS (a $197 value) when you try my Fractal Energy Trading program.
In fact, you get a lifetime license so you’ll always be able to see explosive moves before they happen, or know when trending charts are about to stall out and consolidate.
You see, when you understand the various time-frame and energy levels, you can spot prime conditions for huge trends.
And if you’re already in a trade, then you can better estimate the potential – and stay in for more profits or bail while you’re still safe.
Here’s What To Do NEXT …
Few things are quite as thrilling as overcoming a major trading struggle – which is why I encourage you to give yourself this extra advantage today.
When you register today for just $397 ($297 for Trading Concepts members), I’ll give you instant access to the Fractal Energy Trading video course. During the 3-hour training, we’ll dig deep into each strategy step.
You’ll see how to improve your ability to analyze and forecast trends …
… calculate expected moves (before everyone else) …
… de-clutter your charts with simple reads …
… determine market energies on multiple time-frames …
… enter and exit your position for the best profit …
… and MUCH MORE.