Fib Retracement Trading...

[Trade It]

Yeah I'm sitting on the sidelines right now. Don't want to risk it. So how are you doing using fibs. kagein? Last week was a killer for me, this week hasn't been so nice. I'm thinking about tackling the gbp/jpy monster. Not sure yet, still on the fence. It moves ALOT! Which can be good and bad.

I'm still working with different timeframes as well. Using the 5 and 30min. and the 15 and 1hr. Hope next week goes better.

[kagein]

I'm in a gbp/jpy trade at the moment, been in it since yesterday. Traded off the 4hr chart, still waiting for it to hit my 23% level target which it hasn't quite managed to do yet. Will close the position at the end of the day though regardless.

[daedalus]

Originally Posted by Trade It

I hope everyone's trades are going their way!

I got a quick question. If price breaks the 87% level and closes below it, the trend is broken right? So is that indicator to start drawing grids in the other direction? Or stay out a while and see what plays out?

Originally Posted by kagein

I would personally wait till the move has passed the 100% level before i consider redrawing my fibs.

Kagein is right on the nose. We want to ideally see that move make a lower low or a higher high (break the 100% level) before we'll measure the other way. But make sure your MA bias agrees with the grids at all times!

Its very common with EMA's that the move might break a smaller grid and appear to make a lower low, when really its just aligning to a bigger grid that is still respecting the trend. So make sure you don't get caught on the wrong side of it!

I personally had a great week of trading. I grew my long term swing trade account by 18.5% this week on two winning trades and one small loser.

My other daytrade account grew by a smaller 6% but I was unable to trade two days this week due to some personal issues that required attention away from the screens. Either way, i'll take it, it was a successful week!

[Sweet Pip]

Just wondering if anyone's tried using the ADX indicator with the fibs. I too have not been finding a solid "point of entry" because as daedalus commented, everything is going up,down,up,down instead of up up and away so to speak!

So it seems there's a lot of ranging going on and it seems logical that the ADX will help identify the "trend within the range"...if there is such a thing? I haven't had any time to find if there is a correlation yet since I just read up on the ADX but if anyone else has a chance or knowledge, then it would be interesting to find out.

Thanks

[kagein]

I haven't had a bad week either grew my account by account 11.6%(including the trade I'm still in.) i had one loser though. These days i tend not to look at anything below the 1hr chart. I've come full circle

On a different note, i was wondering if you wait for your indicator to show overbought or oversold conditions before you use the shallow pull back method. This week a number of trades I've been looking at tested the the 38% level and then went on to hit the -10 PT but weren't showing as overbought or oversold.

[daedalus]

Originally Posted by kagein

I haven't had a bad week either grew my account by account 11.6%(including the trade I'm still in.) i had one loser though. These days i tend not to look at anything below the 1hr chart. I've come full circle

On a different note, i was wondering if you wait for your indicator to show overbought or oversold conditions before you use the shallow pull back method. This week a number of trades I've been looking at tested the the 38% level and then went on to hit the -10 PT but weren't showing as overbought or oversold.

I've noticed that the % of winners increases if you wait for the overbought/oversold area when it comes into that 38-50% channel. So I agree with you on the shallow pullback thing. Its not an everytime thing, but i think its a safer setup if the stochastics would be showing those conditions.

[kagein]

Now Ive been really interested in tick charts since daedalus pointed out their benefits, unfortunately the software that i currently use (proquote) does not allow the period of the tick charts to be altered. I stumbled across sierra charts, which give you access to tick carts and at a low price. There's a 15 day trial and subscription starts at $10 per month. The software isn't that user friendly but I'm getting the hang of it. Its great if like me you already pay a platform subscription and can't shelve out extra money for tradestation. Check it out

[kagein]

I was wondering what tick chart periods equate to 15min, 30min, 1hr and 4hr time charts.

[daedalus]

Originally Posted by kagein

I was wondering what tick chart periods equate to 15min, 30min, 1hr and 4hr time charts.

15min is around a 144t, 30min is close to a 233t, 1hr = 512t, 4hr = 1220t...

Thanks for the heads up on Sierra Charts. I've heard good things, and 10 bucks a month is a steal! (I pay 100.00/month) You better be making more than that using this method!

[kagein]

Do the indicators react differently when your using tick charts? Looking at the tick charts i get more overbought/oversold areas.