Hi,
When i open up to say a weekly graph for the EURUSD weekly on MT4, how do i draw in teh fibonacci retracements. At which point on the price bar of the graph do i start to expand the lines?
Hello,
On the very few occasions that I have used Fibonacci Lines I have also had the problem (the common problem with Fibonacci Lines I might add) of where to start them and where to stop them.
‘Traditionally’: you would look for your last low point and last high point and that could / should be your starting points. Sometimes, however, these points are not very clear. There are two little ‘tricks’ that I employ (and use with my trading systems) and these work pretty well for a variety of things:
One: add a ‘Fractals’ indicator to your chart (if your trading platform has this indicator). You could / should then be able to draw the lines from the last ‘up’ ‘Fractal’ to the last ‘down’ Fractal.
Two: add the ‘ZigZag’ indicator to your chart using parameters of between 0 and 2. This indicator very clearly points out the (significant) highs and the (significant) lows so you can simply pick the last high point and the last low point as indicated by the indicator and you should then be ‘good to go’. (This would be my preferred method).
Hope this helps.
Regards,
Dale.
Dale beat me to it, I was going to post that I like to draw Fibs between a level 2 TD point high and a level 2 TD point low (which is actually very close to the ZigZag technique Dale mentions). A level 2 TD (TD stands for Tom Demark) high is a high point which is strictly higher than the high points of the 2 preceding bars and of the 2 following bars.
I marked with a check the 2 most recent high and low points in the attached AUDUSD chart, I would draw a Fib starting from the low thru the high. Now as to whether this Fib is actually a tradable move, that’s another matter entirely 
That’s very interesting. I know who Tom DeMark is but is that an indicator that you have??? (You know that Tom DeMark even has his own Pivot Point Calculation)???
I need to identify SIGNIFICANT high and low swing points for my trading systems and that’s why I’ve had to ‘perfect’ the selection of these points and, as I said, the ‘ZigZag’ indicator with smaller inputs works well for me. Trying to pick these points for my systems (or for Fibo or anything else) ‘manually’ or ‘visually’ has always been difficult for me.
One other ‘trick’ that I sometimes employ is to change the chart to OHLC bars and then zoom out as far as I can to the point where you can no longer see the individual bars and can then only see the SIGNIFICANT high and low points (but this is a ‘less than scientific’ method although it also works)!!!
Regards,
Dale.
Dale,
in this particular case I drew those arrows manually. I have however found on some other forums a couple of indicators for MetaTrader that seem to do a good job of identifying those TD points. I don’t know if you use MetaTrader, if not you can perhaps try to have them recoded for your trading platform.
For both of those indicators, you should set the “FractalAsTD” parameter to false to have them calculate TD points as discussed in this thread. The picture is one of the 2 indicators applied to the AUDUSD 4H chart.
TDIndicators.zip (56.2 KB)
Hey!!! Thanks a lot for that!!!
I don’t use Metatrader (both my brokers have proprietary platforms) but thanks for the scripts i.e. I’ll take a look and code them.
Thanks again.
(How do you like my ‘zoom out’ method)!!! ‘We have the technology’!!!
Actually: I should not joke about it i.e. I just sent someone two charts detailing both methods and, for interest sake, I ‘zoomed out’ and added the ‘ZigZag’ to the ‘zoomed out’ chart and man: those points just ‘jump out’ at you!!!
Edit:
Check them out!!!
Regards,
Dale.
It doesn’t look to me that you are getting an answer but rather others “sharing” their agenda. And I’m sorry I can’t help you but I suggest you read daedalus’ thread in the Swing Trading section and titled “Fib Retracemnt Trading…” Forex Factory has a couple of lengththy threads on trading with fibs - you can read through them and probably get your answer. Also google fibanocci, lots of info out there.
Actually:
Nobody is ‘sharing’ any agenda.
forexbenn was just asking where to place the top and bottom Fibo lines. All we’re attempting to do is give him a way to find those points without having to guess.
As I said: I’m no Fibo expert and don’t rely on Fibo lines at all but I at last know where to start and stop them,
But hey: use it, don’t use it. Just trying to help!!!
would someone be good enough to post some current charts with the fibs as per this thread.
Thanks
as has been stated by the “exhalted one”, who is also known in lessor circles as the “son of a sea cook”, using the zigzags will positively identify where to draw your fibs ---- in fact, one can find many a point that is days and days prior to the present price, so the zigs make it wonderfully simple to locate where to hang your hat, or in this case the ziggies !
enjoy and trade well
mp
it may only be a mustard seed now, but pretty soon it can take on a whole hot dog !
HI lesson.zip (294 KB)