Fib Retracement Trading...

[Trade It]

Are you also using any different confirmation from other indicators when playing the small pullbacks.

This is my favorite system! I've tried quite a few! I started using this system playing the 38.2,50.0 and 61.8 pullbacks. My reason was the wait, I guess. I see more oppurtunities at those levels. I just make sure the stoch. is in line with what I'm wanting to do.

The win percentage of these small pullbacks is amazing! I didn't think it would be that high.

Good work daedalus! I hope you gain many pips!!

[daedalus]

I'm not personally, typically since this is more of a "breakout" method the stoch is already going to be in line with the move by the time you get confirmation. There is no reason why you can't however. If you want to use stochastics as a confirmation of trend continuation, whatever, go for it!

There are more oppritunities at these levels and the win %'s seem to be very high. I'm actually very suprised by it as well. Actually what i'm more suprised is how well the intial stop level (45%), break even level (10%), and take profit level (-10%) work together with price action. I've never seen so many swings stop at a price level (-10%) before. And if i'm honest, those are values I pulled out of thin air to try and get more profits out of a swing, protect us sooner, and keep our initial risk:reward in line. But i'm astounded at how well they all seem to work together.

Cheers!

[kagein]

what if the candle that retraces from say the 50% level closes outside the 23% level do i still enter the trade?

[daedalus]

Originally Posted by kagein

what if the candle that retraces from say the 50% level closes outside the 23% level do i still enter the trade?

If i understand you correctly, yes you do.

[Trade It]

Which pairs are you guys mainly trading. Today was not a good day for me. Lesson learned.

Hope you guys had a better day than I did. Better trades tomorrow!

[tonymand]

Originally Posted by Trade It

Which pairs are you guys mainly trading. Today was not a good day for me. Lesson learned.

Hope you guys had a better day than I did. Better trades tomorrow!

This was my trade yesterday. There was also a legitimate trade down from the earlier high in the morning but I was at work

[Trade It]

Why did you have to post that!! I was going to take that trade too but I went with the USD/JPY instead. Set my stop a bit too low, and got stopped out. But you live and learn. Today I'm already up 40 pips.

Thanks for sharing that Tony. I'll post a pic of my LOSING trade. LOL.

I got in at the first red arrow. Price didn't quite make it to my take profit, then shot back up, as I headed to work to stop me out.

[Trade It]

I've got a quick question.

Should you stick to the bigger grid with larger timeframes. Or draw new grids at new swing highs/lows?

For instance, do you have a higher probability sticking to the highest of highs and lowest of lows on the screen at that time? Or should you play new grids. I will attach 2 examples. #1 will be the most recent swing low/high on the chart. #2 will be the lowest low and highest high that you can see at that point in time on the chart.

What I am asking might not can be answered, I don't know. There might not be a way to justify if that particular trade has a high probability or not. Just thought I would throw it out there.

[daedalus]

I'm more of the first screen shot example, I play the "active" swings. But I think its also relative to the time frame. Your second screenshot may very well be the "active" swing on a 4 hour chart. So both grids are in fact important, but I think they come in to play in different time frames.

[Trade It]

I gotcha! Thanks alot daedalus!