This ‘two in one’ indicator combines Caixote, a graphic pattern that defines entries, and Fractal 358, a new way to read and forecast price movements on chart, that shows both exits and threats to operations in the mini-index (WIN) and B3 shares.
Based on the Fibonacci Sequence, Fractal 358 is a new and easy way of reading and understanding the movement of markets on charts.
Fractal 358 will show potential targets for profitable operations and places in the chart where the risks of a losing position increase.
To better understand this tool, please visit the fractal358.com.br, and take the free training (in Portuguese), presented by the creator of the method, the CEO of ROAR Educacional and Professional Investment Manager, Rogério Araujo.
Caixote is a graphic pattern that shows places to enter day trade operations.
It consists of 4 candles, the leftmost of which must contain the others between its maximum and minimum. It occurs in moments of pause (indecision) in the movement of price in the charts. The investor uses this indecision to position himself before price breaks the Caixote limits.
When a Caixote is formed, the indicator emits an audible and visual signal for the investor to place a long order above and a short order below the limits of the pattern.
As described in the ‘Virando o Jogo’ course (in Portughese), positions can last from a few seconds to a few minutes and look for short targets such as 50 points in WIN or R$ 0.04 in PETR4.
The Caixote can appear in any asset and period. It can be highly profitable in some B3 and Mini-index stocks and useless in other stocks such as the mini-dollar (WDO).
Each asset has its own behavior and the investor must test and analyze how the Caixote pattern perform, in a case by case manner, before committing itself financially.
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For instance, the investor will check a Caixote’s place in relation to the Fractal 358 lines and adjust trades to extract more value than a fast scalp operation and, on the other hand, avoid operations with less chance of success.
Author: Renato Fridschtein is doing software for over 35 years and trading the markets for over 10. Been creating investment indicators and algo trading software since 2020.
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