Framework
Fractal Range Model Framework
Last updated
Fractal Range Model Framework
Last updated
The Fractal Range Model is an advanced trading framework that programmatically detects, visualizes, and invalidates key market concepts such as Sweeps, CISD, Projections, Liquidity Levels, SMT Divergences, PD Arrays, and more.
Designed to streamline the trading process, this model integrates multiple components to offer a comprehensive view of the market, helping traders identify key entry and exit points.
The Fractal Range Model follows a specific lifecycle, which highlights the current state of the model and determines whether a trade opportunity is valid.
The model's lifecycle includes the following statuses:
Formation
Invalidation
Success
The Formation phase marks the initial setup of the Fractal Range Model.
During this stage, the model identifies and plots key components, such as:
Sweeps: Market movements that indicate a potential reversal or strong shift in trend.
CISD (Change In State of Delivery): A structural change that provides insight into trend shifts.
Once these components are detected, the model automatically calculates and displays Projections and Liquidity Levels, offering insights into potential price action movements.
At this stage, the model also identifies and displays the following key elements, provided they are available:
HTF PD Arrays (Higher-Timeframe PD Arrays)
LTF PD Arrays (Lower-Timeframe PD Arrays)
SMT (Smart Money Technique)
If any of these elements are present, they will be automatically displayed on the chart.
A Fractal Range Model is considered invalidated when the price does not reach the 2 Standard Deviation level or the first identified liquidity level, and when the price breaks above the high that formed the Sweep.
Invalidation signals that the original setup is no longer reliable, and traders should avoid taking action based on the model's original parameters.
Key Invalidation Conditions:
Price fails to reach the 2 Standard Deviation level.
Price fails to reach the first liquidity level.
Price breaks the high/low that initiated the Sweep.
A Fractal Range Model is considered successful when the price reaches the 2 Standard Deviation level or the first identified liquidity level.
This indicates that the model's predictions align with actual market movements, confirming the setup's validity and providing a potential trading signal.
Key Success Conditions:
Price reaches the 2 Standard Deviation level.
Price reaches the first liquidity level.
By leveraging these phases—Formation, Invalidation, and Success—traders can effectively manage their positions, minimize risk, and capitalize on high-probability setups based on the Fractal Range Model.
After the Fractal Range Model has formed and key components like Sweep and CISD have been detected, traders can look for entry opportunities based on additional technical signals. The goal is to align the model's formation with other structural clues to optimize the timing of trade entries. Here's a breakdown of when to enter:
Once the model is formed and Sweep and CISD have been established, the next step is to check for Low-Timeframe (LTF) PD Arrays. These arrays are key areas of liquidity or price structure that can give further confirmation for an entry.
If a LTF PD Array is present, traders can place their position in line with this array, as it serves as a strong zone of potential price reversal or continuation.
Action: Look for LTF PD Arrays that align with the Fractal Range Model’s structure.
Entry: If the array provides confluence, place the position near the array with a stop loss below the array zone.
If no LTF PD Arrays are present, the next best entry signal comes from the CISD. When the CISD aligns with the model's structure, it can serve as an entry point, signaling that the market is likely to follow the predicted path set by the Fractal Range Model.
Action: Look for a CISD that aligns with the broader model and the price structure.
Entry: Place a position near the CISD zone, ensuring that the stop loss is set appropriately based on the model's invalidation rules.
If a trader misses an entry at the CISD or LTF PD Array, the next opportunity for entry is at the first C-Area level. The C-Area represents a critical zone where price action is likely to consolidate, and traders should look for volume confirmation and a lack of divergences for a valid entry.
Action: Wait for price to approach the first C-Area level, ensuring that there is consolidation and strong volume present.
Confirmation: Confirm that there are no divergences (e.g., no bearish or bullish divergences that would contradict the price movement). This ensures that the price action is in alignment with the model’s projection.
Entry: If the above conditions are met, place the entry with a stop loss at the end of the C-Area zone.
