Fractals is only one of many ways to find highest high and lowest low. It is one of the best solution to find harmonic patterns, technical patterns such as triangles, trend lines, major support/resistance, etc.
I’m afraid that I am of the opinion that if you draw enough lines on a chart and mark enough highs and lows then you can see what ever you want to see! Oh look there’s my star sign!
You draw a nice little horizontal line that shows support/resistance/supply/demand (you choose – it doesn’t matter price does not care!) and then price comes right up to that line and blows right through it. Trend lines are even worse – just think about how many possible options of points and angles you have to choose from to make them fit to however you want to see them fit. Then price looks at your trend line and breaks through it and then just after you have convinced yourself it is a breakout it pops back over back to where it came from – leaving you moving your line around trying to persuade yourself that maybe it should have been a bit lower or maybe off that point instead.
As you may be able to tell I am a bit of a trend line/technical pattern cynic!
