Fib Retracement Trading...

[tonymand]

Yes I agree with Daedalus. Though depending on your entry trigger the potential rewards are much bigger on the larger grids. Two nice opportunities yesterday. Had to be a bit nimble for the GU as it barrelled down post news but the difference in retails suggested a move might be short lived and against the prevailing trend at the time. With CAD 2 potential entry opportunities. For me only the second is really legitimate as the first occurring during the Asian session is too far out of the tradeable timezone for this pair

[didjerdu]

Tonymand,
I've noticed you use zigzags? How do YOU use them effectively? How do you know when the trend has ended? Do you use them to definitively take profit and then buy/sell when the trend has reversed?
S.

[tonymand]

Originally Posted by didjerdu

Tonymand,
I've noticed you use zigzags? How do YOU use them effectively? How do you know when the trend has ended? Do you use them to definitively take profit and then buy/sell when the trend has reversed?
S.

Have only just started putting them on my charts. Simply looking to see if they identify a more reliable grid for the fib retracement approach than my usual 'eyeball' method

[didjerdu]

Originally Posted by tonymand

Have only just started putting them on my charts. Simply looking to see if they identify a more reliable grid for the fib retracement approach than my usual 'eyeball' method

Thanks. Yes, I've been using them for several weeks now and have come to the realization that they are somewhat helpful on a larger timeframe; perhaps, in the H1 and up. On the smaller timeframes it is useful for scalping. In many cases, in the smaller timeframes, the zigzag forms before the trend ends and frequently you are left taking profit a little early. But it is a very helpful tool when analyzing possible uptrends and reversals. Let me know what your data tells you.
S.

[kagein]

My funds arrived yesterday and i used the shallow pull back in my live account for the first time.

Image 1: I placed my stop just below the 87% line, if i had place it below the 100% line i would have stayed in the trade and hit the 38% PT.

Image 2: This the oldie but goody deep pullback method, tested the the 62% level then shot for the 23% level, i actually took profit at the 100%

Image 3: Placed a limit order at the 23% level, took profit at the -10% level.

[Sweet Pip]

So how was it emotionally for you during the trades being that they were "live" and not demo? Glad to hear they were successful!

[daedalus]

You guys are doing great with your trades! Congrats on going live Kaigen, just keep things consistent and rule based and your going to do fine!

I'm trying to refine the shallow pullbacks a bit more as far as entries go because there are a lot of great moves that don't give an oppritunity to get in at the 23.6% level so i'm gonna do some work with that over the weekend.

Anyway, keep it up!

[kagein]

oh ive been live for more than a month now, i pulled all the money out of my account and refinanced it with bank wire because paypal take 3% when you withdraw. i figured better to take the hit now rather than later. I was using the shallow method all of this week on my demo account until my funding came through. As for emotions, i think im handling them quite well. I believe in the method and record my mistakes.

[tonymand]

Originally Posted by kagein

My funds arrived yesterday and i used the shallow pull back in my live account for the first time.

Image 1: I placed my stop just below the 87% line, if i had place it below the 100% line i would have stayed in the trade and hit the 38% PT.

Image 2: This the oldie but goody deep pullback method, tested the the 62% level then shot for the 23% level, i actually took profit at the 100%

Image 3: Placed a limit order at the 23% level, took profit at the -10% level.

Well done Kagein, a nice series of ideas implemented

[kagein]

Originally Posted by tonymand

Well done Kagein, a nice series of ideas implemented

I think most of the praise should go to daedalus for producing and updating such a concise thread on his methods. You guys have been great too with the numerous trade examples. i think i should do the same, to help anyone new to thread.