Practic Lesson 02
Stratching and folding on the charts
So, in general, we figured out the question of what lies behind the term
"Strange attractor" and how it looks on the charts, and also learned how to mark the tops of zigzags inside the attractor. Now it's time to deal with
stretching and
folding, what they look like and how to use them.
You can say that numbering the tops of zigzags correctly is a difficult and tedious process.
But Orbit is easy! And for the most part, you don't have to do this numbering, although it's a useful skill. The Master made the template in such a way that stretching and folding can be seen with the naked eye. To do this, the template uses a semaphore with a period of 4. This is a very small period, created specifically to see the phases of the folding.
Look at the picture below. It depicts a complete attractor with the beginning at point X and the end at point Y. This attractor is divided into smaller fractals. All this is actually very complicated, besides... there can be several markings and everyone will say that his marking is correct (as in the Elliott wave theory, whoever is familiar will understand what I mean... How many traders - so many markings

)
Now look at the next picture... It shows the folding phases (pullbacks in the language of traders). These are some constructions, usually consisting of 4 adjacent dots of the semaphore. The minimum number of dots is 3, the maximum can be anything... The Master refers to such constructions as
"Saddle", although the more common names in traders' slang are range, sideway, pullback.
Note that I have marked these Saddles with rectangles of different colors. What's the matter here?? Yellow rectangles denote saddles, in which all semaphore dots included in their composition have the same rank. Green represents a Saddle where the start and end points have a rank one higher than the other inside dots.
And this is very important! Combinations of dots can only be such and no others. For example, 4 adjacent points are marked with a red rectangle, which are not the Saddle. Look - the 3rd dot has a value one higher than the rest - this is an invalid combination.
Now compare the two previous pictures.... Isn't the second one much easier to understand and perceive?? Once again -
Orbit is easy!
Next, let's look at the figure below... It shows your possible entries into the position after the end of the folding (saddle) phase in the direction of the development of the higher-order attractor. Isn't it simple? We just see a few dots standing side by side (at least 3) and begin to observe the development of events more closely. We are waiting for the end of the folding phase and enter the position based on the indications of the screenface elements (more about this in the next lessons). Isn't it simple?
Very important point!!! In your observations, never go below
M30 TF! There is only noise below and nothing more, besides, the screenface will not be able to accompany you on such fast timeframes. M30 is the base for crypto's, indices, metals, and fast crosses. For slower turtles such as the Majors, H1 can be used. You must choose the TF for your favorite pair yourself, but it can't be lower than
M30! Considering that we are talking about such timeframes, you don't need to sit near the screen all day and watch the screenface, it is enough to look once every half an hour to see if several semaphore dots are formed near each other. And only after you notice that the Saddle looms, you begin to observe more closely and build a trading plan.
In the next figure, I want to draw your attention to the fact that it is highly desirable that the end dot of the phase, or the middle dot, lie on the corresponding channel line. It's like a bullet point, saying that the folding phase has been completed successfully. Don't trade such combinations of dots that "hang" inside the channel without touching the lines. This will significantly reduce defects at work. You may miss out a few profitable trades, but this approach will save you from a lot of losing trades. So, the last point that completes the folding phase should be on the channel line.
Also, pay attention to the fact that all the end dots of the folding phase correspond to the 2nd vertices of fractals of different orders (compare with the first picture), which once again confirms that we are opening a position in the right direction, because after the second there must be a third vertex.
The figure below shows an example of my yesterday's sell trade. As you can see, everything is simple.
Hope the information was helpful. To be continued...