1mTrading Strategy journal

Spriggz · October 1, 2009, 2:46pm

1mTrading:

A lot of people draw the fibonacci in the tendency previous with expectation of foreseeing the supports and resistances. I wonder: so that I will know the resistances and supports, the price can beat in her and to break or to beat and to return, that doesn’t guarantee me anything and it is not useful. It is easier then to put an EMA of 62 periods and to use common fort supports movable. To draw with the 100% in I begin of the tendency and the 0% in the end for me is wandered, because to hope the price returns and does it fall if it is much easier he to walk in favor of the tendency? George Soros says (I am not sure if it is him who says) �is not because the price already went up a lot that he won’t arise more�. Follow the tendency if the price this going up the purchase then is the most favorable. See as I do:

After confirming begin of a tendency I draw the fibo hoping the price goes until the projections and I buy where I consider the best point the 38%. If the trade is perfect I almost guarantee a profit 3 times larger than the loss. But remembers this method should be used just in begin of a small tendency, a small tendency where the larger tendency is favorable.

does anybody disagree? I would like to know you point of view.

Why are you using 161.8 instead of 138.2 as your target?