Fib Retracement Trading...

[daedalus]

Originally Posted by kagein

ok, i determine the trend and the likely retracement levels on my daily chart.

Do you set you stop losses off the daily chart or do you set a new Fibonacci levels on your hourly chart and set stops and take entries off that?

If your grid is on the daily chart, that is what determines your stop losses. If your looking on a 60 minute chart, you need to be using that grid to set your stop losses. Basically, whatever the grid is, regardless of time frame, is going to determine your stop loss (a pip or 2 outside of the 87% level).

Make sense?

[vizfact]

Fibs aren't nothing but lies.

[kagein]

Yeah it makes perfect sense

[kagein]

Originally Posted by vizfact

Fibs aren't nothing but lies.

I happen to disagree, I read currency research from UBS and they use fib lines in their analysis. If the big money is using fibs, i suggest you take note of them.

Whether they actually work or not doesn't bother me, the fact that the big money think they do is enough to merit their use by the individual trader.

[vizfact]

Ok, I am sorry I apologize, But I just feel that a Fib will fit anywhere.

However, I do not have a serious bias, I was talking noise. I am new to the community and was really just saying hi.

I am an experienced trader and am set in my ways. But I have no real beef with the fibs.

I believe the mathematic undertones of the fibonacci concept is the stuff of Gods , to be quite frank.

And another thing Just because UBS uses them means absolutely nothing, you have to know where to enter, when to get out , their reason behind taking the trade, and their stop losses if there wrong. Not to mention knowing their targets.

You my friend seem inexperienced. Or far from winning at best and fast at Whining.




A fib may help you predict a bottom but predictions are the stuff of losers.

Now if you got a significant fib bottom (significant depending on your education) and say a MA cross, or a MACd cross or some kind of indicator help/ something to go with it, then you have what may one day be a solid trading plan for buying dips/taking profit from a short created from the use of a different strategy.

But not much else.

[kagein]

Your quite right, i am new to the currency markets im going into 3rd week live trading, i am however making a healthy profit not from a large opening account mind you but a profit is a profit.

I think you've misunderstood my last post, i never advocated that fibs alone should be used without taking into account other factors but i do believe they should at least be taken note of.

So many people believe they work, thats good enough.

[daedalus]

Originally Posted by vizfact

Fibs aren't nothing but lies.

I actually thought this was an intentional pun...

Not saying its for everyone, but its my niche and i love em!

Cheers!

[pipbull]

Originally Posted by vizfact

Fibs aren't nothing but lies.

I find comments like this get under my skin.

They may or may not work, i don't know...i have never used them. But your conviction that they don't is seemingly empty and unsupported.

Instead of blurting out useless statements like that which bring nothing to the discussion could you at least back your opinion with some evidence? That might be more helpful to those people considering adding Fibs to their arsenal.

[daedalus]

I've found that they are just another way of looking at the market. My entries probably line up with some kind of macd cross, or some kind of moving average support, or maybe some type of RSI divergence, or maybe pivots, or trendlines...

So what caused the market to move? Was it my analysis or yours? The truth of the matter is that it is the cumulation of all of the factors that makes the markets move in these predictable patterns. To each his own. They work and make me money everyday so I have nothing to complain about.

Saying they are lies is biased and unhelpful. If you don't like my method I describe in this thread either provide helpful criticism or stay out and keep your opinions to yourself.

Sorry if i seem peeved, but I have put a lot of time and effort into meticulously explaining how I trade in this thread so others can benefit. If its not for you, fine, but don't rag on my work i've taken the time to produce for the good of the forum.

[kagein]

Originally Posted by daedalus

I've found that they are just another way of looking at the market. My entries probably line up with some kind of macd cross, or some kind of moving average support, or maybe some type of RSI divergence, or maybe pivots, or trendlines...

So what caused the market to move? Was it my analysis or yours? The truth of the matter is that it is the cumulation of all of the factors that makes the markets move in these predictable patterns. To each his own. They work and make me money everyday so I have nothing to complain about.

Saying they are lies is biased and unhelpful. If you don't like my method I describe in this thread either provide helpful criticism or stay out and keep your opinions to yourself.

Sorry if i seem peeved, but I have put a lot of time and effort into meticulously explaining how I trade in this thread so others can benefit. If its not for you, fine, but don't rag on my work i've taken the time to produce for the good of the forum.

When using daedalus' method with a broder view of market sentiment has helped me make over 400pips trading the GBP/JPY over the past 2 days. Great thread