Fib Retracement Trading...

[pippiphooray]

Originally Posted by daedalus

Guys, I just had to share this... so that eurjpy trade... I just closed it out for 233 PIPS!!! That is the biggest fx trade i've ever made. I'm stoked!!!

Entry was at 158.71, exit at 156.43... the rest is history!

Cheers folks!

great job Daedalus,

Thanks again for all your insight on the fib trading. I have been trading the fibs on the 1H/15M TF and wanted to run something by you. I drilled down your 4H chart to a 1H time frame and noticed a perfect set up to go short again on that pair after your initial trade to the 23.6. After the two candle penetration of the 0 line on the lower 0 line was established (blue oval) price was telling us where it was going to go, it was most certainly going to revisit it and blast through to the 138 at least. I typically trade the shorter pullbacks because I am looking for trend continuation price to go past the 0/100 line to it's TP area of the 138 or 162 area. I like to get my entry in at the 50 or 62/38 lines and watch it go through the 0/100 line and onward to it's TP1 area. That lower blue oval on my chart was IMO a perfect short signal set up. I would get back into the short trade after price retraced back up to and came out of the 62/50/38 fib zones.

[daedalus]

Yes, that logic makes sense. Many larger moves signal smaller timeframe setups.

[Agaden]

Just wanted to stop in and say thanks for the starting this thread (im late to the party ) and sharing your ideas. I'm very new to Forex and still learning my way around but it is posts like these that give new people ideas to consider and help shed a little light.

Thanks again,

Aga

[daedalus]

Welcome! Thanks for the kind words. Let us know if you've got questions!

[Party1929]

>Let us know if you've got questions!
Great thread. Can I PM you?

[daedalus]

You can PM me anytime, just keep in mind I think you need to have a minimum of 50 posts to be able to use the PM feature on this forum. So while you'll be able to send me them, I won't be able to reply to you until you rack up some more posts. If they are general trading or fib specific questions feel free to just post them up in this thread so everyone can benefit!

Cheers!

[Party1929]

>you need to have a minimum of 50 posts
Aaaah that was the piece of info I was missing.
OK well one thing I wanted to clarify was you Long entries. It looks from a few of the charts that you entered on the second bar not the third. Meaning, bar one penetrates the fib level and closes, bar two you are long, rather than waiting for bar two to close and confirm the retracement then enter on bar three long.

[daedalus]

You have the right concept... sometimes when i'm making these charts i miss the arrow by a bar or two (they can be finicky in Tradestation)... but you are correct...

Think of it this way, it would be entering on the close of the bar with the arrow, or as you said, at the open of the 3rd bar.

[Party1929]

ah ok.
Well look for a PM from me in about 2mo when I rack up 47 more posts

[quicksilver03]

Thanks daedalus for this method, it's one of the best I've tried so far. Here's one example of a recent trade, maybe it was just luck but at least I tried to follow some logic: waited for a retracement to 76.4, put a long order at 61.8 and then this morning a nice surprise, it was not too far from 23.6.

Maybe I could have stayed in the trade, but I happily took the 78 pips. Many thanks again