Statuses
Fractal Range Model Statuses
Last updated
Fractal Range Model Statuses
Last updated
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
Pre-Invalidation
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 pre-invalidated when the body of the subsequent candle closes above the sweep, yet the high that formed the sweep remains intact.
In such cases, the model is typically deemed unreliable, as it suggests a potential failure in most instances.
Despite this, the high from the original sweep continues to hold significance, indicating that the model has not yet been fully invalidated but is on the brink of doing so.
Most of the time, these models do not result in successful outcomes.
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.
