Abcd 5m - success!

[Spriggz]

Hello Veterans and fellow newbies.

After backtesting the ABCD Fibo trading methond (trading C to D) on the USD/CHF, EUR/USD, and GPD/USD I took a wack at predicting current trades.

Note: I didnt actually make the trades as this was my first time testing the method real time.

had to zoom out a little more on USDCHF because it took a little longer to TP.

Here are my RESULTS!!!

EURUSD:


GPDUSD:


USDCHF:


When I start trading these I'm thinking about using a 25SL:50TP

Any feedback? What other currencies work well with ABCD?

Thanks,

Spriggz

[lolis]

I dont trust fibonacci. How do you know is it retrace or start of a new trend?

Ok it went back from bottom to 50%, then went down again a little. You entered SELL. And then! it starts to go up again, but now going up much higher and you cant see the end. At this point you should be very scared and exit trade with loss.

[Spriggz]

Originally Posted by lolis

I dont trust fibonacci. How do you know is it retrace or start of a new trend?

Ok it went back from bottom to 50%, then went down again a little. You entered SELL. And then! it starts to go up again, but now going up much higher and you cant see the end. At this point you should be very scared and exit trade with loss.

I see that you are referring to the Hypothetical trade on the EURUSD.

1) The farthest above my trade entry before reaching the more aggressive TP was only 11 pips. Had I been "very scared" at that point, I would have missed out on the 68pips the trade had to offer. At which point, the trade would have been closed with my 50pip TP.

2) That is what a 25pip SL is for.

3) Prior to moving above 50% (by only 11pips), the trade had already moved 47pips in my favor.

4) The 11 pips above 50% is the 38.2% mark, ALSO a predicted resistance level by the fibo.

5) All in all: I would have profited 150pips from the 3 trades, though I may have been fazed by the 11 pips of heat.

Thanks for the feedback,

Spriggz

[Spriggz]

Lolis makes a good point about new trends. Is sideways movement bad news for fibo-based trades?

Thanks,

Spriggz

[lolis]

sideways means probably soon will be big changes, but you dont know up or down, and you will not see that in fibonacci

[Sweet Pip]

Hi Spriggz,

Are you drawing your fibs from B to A? I don't know if it really makes that much difference except that your fib % levels are backwards between 0 & 100. The 50% is fine...lol...it's in the middle. But the 38 & 61 ones are incorrect. If price retraces 61% of the AB line, then C is a lot further away from B...more than 50%. Conversely, if the retrace is 38%, C will be closer to B.

However, they are just lines. Important thing is to get to know which ones each pair respects more often, whatever it's called. But it helps to have it correct when discussing it with others or it may cause confusion.

[cadarkitek]

Originally Posted by lolis

I dont trust fibonacci. How do you know is it retrace or start of a new trend?

Ok it went back from bottom to 50%, then went down again a little. You entered SELL. And then! it starts to go up again, but now going up much higher and you cant see the end. At this point you should be very scared and exit trade with loss.

No indicator should be trusted 100% including fibonacci, however traders use indicators as variables to get an edge in the market. As a user of fibonacci I must admit its has been great for me with the system I trade. By looking at a naked chart you will see that it moves in waves and swings, fibonacci is a/the tool most use to determine the end of a retracement to try and get in for the next swing or the completion of a wave.

[cadarkitek]

Sprigs as Sweet Pip pointed out your fibs are wrongly placed. You cannot have a retracement to a 618 before a 382. Go to properties and edit the settings. Below is an example of the levels should be placed.
9.29.1h.jpg

[Spriggz]

I realize the fibo is upside down, but i didnt know how else to use it to predict the continuation down. I'm pretty sure I used the lines correctly, even though they are labeled with the wrong numbers. Should I add -27.1, -38.2, and -61.8?

btw, I cant read the numbers on ur image cadar.

Also, I'm looking for a good fibo manual online (a video would be nice). I found FXKnights video on youtube to be much more useful than FX360's manual.

Thanks,

Spriggz

[Sweet Pip]

Originally Posted by Spriggz

I realize the fibo is upside down, but i didnt know how else to use it to predict the continuation down. I'm pretty sure I used the lines correctly, even though they are labeled with the wrong numbers. Should I add -27.1, -38.2, and -61.8?

btw, I cant read the numbers on ur image cadar.

Also, I'm looking for a good fibo manual online (a video would be nice). I found FXKnights video on youtube to be much more useful than FX360's manual.

Thanks,

Spriggz

I was thinking that might've been why you did it that way. Yes you would add those negative levels to your fib tool...that's what I did.

I have a few ebooks spread around on different computers...lol...but here's one I have on the one I'm using right now.