2. Catching the Current
More to H4 (Medium Term) and take a closer look at the Smaller / Medium term channel.
By catching the current i mean, jumping in where you need to do the least work. Piggybacking. Getting from the middle of nowhere to Australia on the East Australian Current like Nemos' Dad did on The Turtles back in Dysney-Pixars finding Nemo.
We want to place our trade there where we know everyone else is going to trade.
What better way to do that, than to use the chart time frame that everyone will be monitoring ?
The big boys > the ones who will make the price move!
On the chart bellow, you will notice the same occurences, but on a small levels.
Same channel, same bounces off of R and S.
Once again we will be looking for areas where the channel R or S coincides with a fibonnaci level.
On the next chart below we are actualy coming closer to our present day and Trade No. 15 which i took the other day.
We apply the same rules. We estimate the channel bottom and try and find a significant fibonnaci level that complements it.
NOTE: How the price hit the channel bottom, but was not satisfied and tested 50% Fibonnaci right below it before it came back up.
If you werent aware of the FIB level below the chanel and entered long prematurely with a small SL, you would have gotten knocked out.
This is catching the current.
3. Taking the Dive
In this stage all we do is go to a lower time frame.
I prefer anything from H1 to M5. This is where i execute with an accuracy to the pip so i make the best entry and set the optimal stop loss.
As you can see on the chart above. If you executed at 50% Fib and set you SL at the next Fib Level down (61.8) you would have had an approximate SL of 60 to 70 pips with potential gains of up to 800 pips.
Talk about a win to loss ration eh ?
Note: After the price bounced off S it moved up about 180 pips, then some short term and mid term folks who might have been trading with multiple lots locked in some profit and a profit taking correction took place which as you can not terminated at 50.00 spot on.
We should witnes trend continuation now.
My assumption about the multiple lot traders is a wide one, but i'm just giving an example. I for instance did just that, locked profits with 1 lot and let the remainder run.
Well dudes and dudettes.Thats it for that.
for GBP JPY i used the exact same TA.
Once again i do apologise for the unorganized text and everything, but im doing this in real time just off the batt.
Regards,
E. Lang
but also those trading fibonnaci levels.
Linear Mode
