94# Fractal Breakout Scalping Strategy

Joy22 2025

The Fractal Breakout Scalping Strategy aims to capture quick momentum moves by entering on fractal‑based support/resistance breakouts, filtered by the 100‑period moving average. Two layers of momentum confirmation—an RSI + Stochastic overlay (the “OBOS Zone”) and a dual‑Stochastic window (with an EMA)—help ensure high‑probability entries.

Setup

Time Frames: 5‑ and 15‑minute charts.This strategy can be configured for other time frames as well. It is a very suitable strategy for Hedging.
Instrument: Any liquid Forex major or cross
Platform: MT4
Chart Elements:
- 100‑period Simple MA (trend filter)
- Fractals (Bill Williams, period = 7)
- OBOS Zone (RSI 16 + Stoch 30,3,3; horizontal lines at 55/45)
- Dual Stochastics Window:
  - Stoch 16,3,15
  - Stoch 1,3,1 with an EMA 6 applied to the fast %K

Entry Rules

Trend Filter (MA100):
- Longs only if price and candle bodies are above MA100.
- Shorts only if price and candle bodies are below MA100.
Fractal Breakout:
- Buy when a bullish fractal forms and a candle closes above that fractal high.
- Sell when a bearish fractal forms and a candle closes below that fractal low.
Momentum Confirmation optional:
- OBOS Zone:
  - For buys: RSI > 55 and Stoch 30,3,3 rising.
  - For sells: RSI < 45 and Stoch 30,3,3 falling.
- Dual Stochastics + EMA 6:
  - For buys: both %K lines rising from below 40, supported by EMA 6 trending up.
  - For sells: both %K lines falling from above 60, guided by EMA 6 trending down.

Exit Rules

Stop‑Loss:
- For longs: place below the most recent swing‑low fractal.
- For shorts: place above the most recent swing‑high fractal.
Take‑Profit:
- Aim for a 1 : 1.3 risk‑reward ratio,
- or trail with a 5‑period EMA on the same timeframe and exit on a candle close through it.
Momentum Rejection:
- Exit if the OBOS Zone reverses across the 55/45 midline against your trade,
- or if the dual Stochastics cross back through 50 in the opposite direction.

Conclusions

The 100‑period MA is the primary trend filter—never trade breakouts against it.
The dual‑Stochastic window (two Stochastics plus an EMA) refines entry timing.
Always employ disciplined risk management (1–2% max per trade) and thoroughly demo‑test before trading live.