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Flash Formation Fractals are used to project possible points where a correction is likely to take place. Note, they do not predict trend reversals, but merely places where a Trend Continuation Thrust is likely to run out of steam. This could result in a trend reversal, a range, or a counter-trend consolidation.

There are 3 parts of a FFF. The first leg is the initial thrust down of a new trend. In the new downtrend shown, it is drawn vertically from the price high to the lowest price achieved during this initial thrust.

The next line is a diagonal line connecting the end of the first line to the high reached during the consolidation.

The final line is another vertical line connected to the end of the the diagonal. It is the same length as the first line.

The price shown at the end of this line marks the “Target Area” where you can look for a likely correction. These are marked by the dotted blue lines T1 & T2 on the chart.

I am new to FFFs and as there is not a lot of info out there on their usage, it’ll take some time to get the hang of them fully but I’d recommend only taking the first 1 or 2 at the beginning of a trend. After that, there will likely not be enough steam to cause price to reach the targets projected.

If you catch the move early enough, you can also draw what I have dubbed a FFF2 line from the high of H1 to the low of the second consolidation L2…Then connect this with the high of the the second consolidation H3…and draw the third arrow from there.

This is a more aggressive line versus just drawing the single FFF1 lines based off of each subsequent pivot, but if you are scaling out of a position, it might be worth looking into. For all I know I could be interpreting the whole thing incorrectly anyway but I used this method VERY successfully today in going for much greater targets than I usually do. I certainly wouldn’t have hit my Net Daily Goal without them today, and I look forward to continuing to put them to the test going forward.

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