Fib Retracement Trading...

[daedalus]

Thats a nice setup Rod! That is textbook shallow pullback there. Like i've said before I really don't trade the shallow pullbacks too often anymore. They still work, don't get me wrong, I just find that I have enough to keep me busy with the deep pullback setups on the 1HR and 4HR charts these days. The 4HR has been MONEY these past couple days in the markets. Lots of PERFECT setups.

I hope all of you are still finding sucess with this method. Please let me know if you have questions!

Cheers!

[rod_falcon]

Well, I got burned on that trade.

Still cannot tell what caused that spike in the dollar during the Asian session, anyone?

Probably I should not have traded during a public holiday in the US and the UK, it is very likely equivalent to trading on weekends. Moreover, lots of early Tuesday morning news releases, should have been mindful of those. Things to consider for the next setup ....

Thank you Daedalus, I will switch to the 4 Hour timeframe, it looks worth a try. Have to be more patient though, less setups !!!

[daedalus]

There were some WIERD undulations in the market this morning. I'm not quite sure what caused it either. I'm sure you weren't the only one affected by it!

[kilgore trout]

Daedalus - a big thanks to your good self for sharing your method, I've been applying it for a few weeks now and things seem to be working out - I'll buy you a few pints of guinness if you ever come to Ireland! I was just wondering if you pay much mind to fundamentals? My approach is to incorporate fundamental analysis with the technical aspects of fib retracement - although it leads to even less trades being taken, I find it keeps me out of more bad trades.

Rod - the spike in that session could have been down to the German consumer confidence report (came out 7am my time, think 2am your time?) After consolidation and the long weekend, EURUSD was itching for direction -the poor Euro report gave USD a huge boost, spiking massively against EUR. USD was bought up across the board, making substantial gains against CHF, JPY, GBP for that hour. You could try adding a stoch? If you had a stoch on your charts, you'd have seen that USDCHF was pretty much oversold when you went short on it, would have kept you out of a bad trade. Keep out of the bad trades people, the secret to forex success!!!

[Cowaboi]

Hi Daedalus,

Several hourly setups forming across the board as I type...I like your style of fib trading and will be forward testing in earnest from the latest batch of signals. I prefer to use the daily 5,3,3 stoch for trend (on hourly setups in paticular) but i'm guessing it probably evens out in the end against other indi's/methods for determining trend for this strat, so no big deal.

Out of interest how has May been for you, using this?....i've had a tough month.

ATB & good trading.

[daedalus]

trout - i don't personally use any type of fundamental analysis but there is no reason why you can't. I'm sure it could help. I just find that it is one aspect I don't want to incorporate into my method personally.

Cowaboi - There are some tasty 1H setups... i'm waiting to pounce on them as well. Actually long the eurjpy as I type.

I was up 383 pips trading the 4HR chart only in the month of may. I missed a lot of signals (they went while I slept) and played it real conservative. I've been focusing on refining my e-mini futures trading so forex has taken a backseat. The stoch filter could help - i'll def. check it out. I typically just try and trade in the direction of the 4HR MA bias on the 1HR. Same idea i suppose!

I'll post up more setups to give people a refresher of some setups this week.

Cheers folks!

[rod_falcon]

Originally Posted by kilgore trout

You could try adding a stoch? If you had a stoch on your charts, you'd have seen that USDCHF was pretty much oversold when you went short on it, would have kept you out of a bad trade.

I sincerely appreciate this advice. I placed the Stochs on my next setup (short EURUSD last nght), and it worked!!! My first 51 pips. Thank you to everyone who made a contribution to this excellent thread.

[daedalus]

Originally Posted by rod_falcon

I sincerely appreciate this advice. I placed the Stochs on my next setup (short EURUSD last nght), and it worked!!! My first 51 pips. Thank you to everyone who made a contribution to this excellent thread.

Just wanted to point out that I mentioned this back here: http://forums.babypips.com/35483-post84.html

lol. Sorry... Just wanted to point that out. CONGRATS ON THE TRADE!!!

Cheers!

[ryan56]

I would like to thank you all for helping me in the Fib retracement of the EUR/USD setup as I made over 60 pips.
Keep it up

Cowaboi - There are some tasty 1H setups... i'm waiting to pounce on them as well. Actually long the eurjpy as I type.

I was up 383 pips trading the 4HR chart only in the month of may. I missed a lot of signals (they went while I slept) and played it real conservative. I've been focusing on refining my e-mini futures trading so forex has taken a backseat. The stoch filter could help - i'll def. check it out. I typically just try and trade in the direction of the 4HR MA bias on the 1HR. Same idea i suppose!

I'll post up more setups to give people a refresher of some setups this week.

Cheers folks![/quote]

[kilgore trout]

Well done Rod, first of many I hope!