Yes I agree with Daedalus. Though depending on your entry trigger the potential rewards are much bigger on the larger grids. Two nice opportunities yesterday. Had to be a bit nimble for the GU as it barrelled down post news but the difference in retails suggested a move might be short lived and against the prevailing trend at the time. With CAD 2 potential entry opportunities. For me only the second is really legitimate as the first occurring during the Asian session is too far out of the tradeable timezone for this pair
Tonymand,
I’ve noticed you use zigzags? How do YOU use them effectively? How do you know when the trend has ended? Do you use them to definitively take profit and then buy/sell when the trend has reversed?
S.
Have only just started putting them on my charts. Simply looking to see if they identify a more reliable grid for the fib retracement approach than my usual ‘eyeball’ method
Thanks. Yes, I’ve been using them for several weeks now and have come to the realization that they are somewhat helpful on a larger timeframe; perhaps, in the H1 and up. On the smaller timeframes it is useful for scalping. In many cases, in the smaller timeframes, the zigzag forms before the trend ends and frequently you are left taking profit a little early. But it is a very helpful tool when analyzing possible uptrends and reversals. Let me know what your data tells you.
S.
My funds arrived yesterday and i used the shallow pull back in my live account for the first time.
Image 1: I placed my stop just below the 87% line, if i had place it below the 100% line i would have stayed in the trade and hit the 38% PT.
Image 2: This the oldie but goody deep pullback method, tested the the 62% level then shot for the 23% level, i actually took profit at the 100%
Image 3: Placed a limit order at the 23% level, took profit at the -10% level.
So how was it emotionally for you during the trades being that they were “live” and not demo? Glad to hear they were successful! 
You guys are doing great with your trades! Congrats on going live Kaigen, just keep things consistent and rule based and your going to do fine!
I’m trying to refine the shallow pullbacks a bit more as far as entries go because there are a lot of great moves that don’t give an oppritunity to get in at the 23.6% level so i’m gonna do some work with that over the weekend.
Anyway, keep it up!
oh ive been live for more than a month now, i pulled all the money out of my account and refinanced it with bank wire because paypal take 3% when you withdraw. i figured better to take the hit now rather than later. I was using the shallow method all of this week on my demo account until my funding came through. As for emotions, i think im handling them quite well. I believe in the method and record my mistakes.
Well done Kagein, a nice series of ideas implemented
I think most of the praise should go to daedalus for producing and updating such a concise thread on his methods. You guys have been great too with the numerous trade examples. i think i should do the same, to help anyone new to thread.
Yes I agree totally with you. The ‘score’ for using the 78.6 retrace approach last week
EY, 3-1; GY 2-0; and UC 3-0
Since the return on a win is 1.7 R this gives an overall return of 12.6 for the week
I also had a great week. Much thanks to this thread!
Hard to believe I was trading all this time without using fibs, and now I am more confident when I pull the trigger. Had a couple losses early in the week but gained them all back on Thurs. and Fri.
Thanks all for the great examples using and clarifying fibs.
Hope everyone has a great weekend!
A pair has retraced back to the 76% line and starts to continue the trend. If you missed the first candle after the continuation of the trend would you still trade the pair?
Depends on your risk reward. If your stop was now going to be the extreme of the move rather than some point further out the R may still be acceptable in which case yes
I’m newbie… how to know where to draw the lines?? i know is should be drawn on peaks to lows… which peaks which lows? 
This comes with experience. Depends on timeframe and what you define as a significant peak and which grid you think is in play. Follow price action for awhile on a pair you are interested in and get a feel for what is the best area. There is no shortcut around doing your own homework on this, same for any method. This is last weeks H1 EY with what I think were the significant peaks and troughs but others would differ in their interpretation. For me this gave 3 playable pullbacks for the week although the best trade was to get long early in the week and stay there
Hey Tony,
Have you heard of the risk calculator just for fibs? I ran across it the other day but forgot to save it to my favs. If I run across it again, I’ll post it. Looked like a nice tool.
Have a good one!
That sounds interesting, i’m trying to google it now
I found it! Here it is.
Let me know what you think. I’ve only used it a couple times. So I’m not sure of the accuracy.