Thanks for the reply.
I’m only half way through reading the thread (although I am working through it). I was sure I read though about a shallow pullback method you described where you’ll go form 38 to 23.6 for multiple small gains? In my image the price stalled around the 38 for a short while. Would this been seen as a potential short entry?
Or have the shallow pullbacks been abandoned as the 61.8 is successful enough?
Thanks again,
Cord
Honestly I don’t trade the shallow pullbacks anymore. They work, but I feel that the deep retracements offer more than enough opportunity everyday and are very consistent.
Great, thanks.
I feel more comfortable using established ‘deeper’ retracements so it’s good to know others are following them same ethos. Am enjoying this thread a great deal, keep up the good work 
Daedalus,
How do news events fit into your strategy? Using an hour chart or longer time frames, you’re bound to run into news that are scheduled in the middle of potential trades. Do you ignore them? Don’t open trades within a certain time frame before news? Or open trades, but exit right before the news?
Thanks!
Trade the reaction, and not in front of it!
I always keep an eye on news events. On a daily basis I make sure i’m not taking trades until after the news releases in the morning and if i’m trading the overnight sessions or have any longer term 4H plays on I make sure to monitor the news situation in that currency pair prior to the release.
If you had a position on and there was a news release with low-med impact on I might leave it on or try and get my stop to par. If the pair is going to be expecting news with a high market impact i’ll usually just take profit or pull the position off.
Taking a small loss or small profit is better than being in front of a train that you don’t know where (or if) it is going to stop.
Hope this helps!
BTW, I use this: Economic calendar | financial calendar | Forex economic calendar
To get my daily news releases for the FX markets.
Cheers!
Thanks Daedalus!
One more question if you don�t mind� Do you have any tips, or any personal rules for drawing fib lines? Most of the times, it�s obvious, but sometimes, the highs and lows are� fuzzy. Other times, it�s hard to determine whether a low/high is considered part of the previous wave or the current one. Please see attached for some examples of what I mean. The black lines represent the backbone of potential grids. Which ones would you have chosen if you were to draw a fib for those particular �waves�?
Hello Friend,
This gives the actual direction of the market. And one can trade efferently. When i started trading i didn’t find these lines or bar charts etc. These functions and techniques have developed recently. Thanks for the help
This is one of the best questions anyone has asked! And it can be complicated to answer or very simple at the same time.
The Simple:
My first inclination in the “fuzzy” scenario is this: Wait for a more clear setup. I know its cliched and probably not the answer you want to hear but anything we can do to improve our odds is good for our profitability and if the setup is so fuzzy your actually having to question your anchor points then its really one to walk away from.
General Rule of thumb… If I can’t “see” the setup from one glance at the chart, it just isn’t there. We all know this method works best on the swings that are just BOOM there and are undeniably a swing higher and lower and a clean retracement, so try to focus on identifying those setups and passing on the rest.
The Complicated:
To answer your question in the other way that is still very acceptable and will work is this… Anchor a grid from ALL points in both examples. See where you get multiple layers of confluence between both measures and look for price interaction in that zone.
In your second example there is one caveat to that rule. While I would still advocate a grid from A, B, and C, on a straight slam move with that big (what I assume is a news candle) move the most likely grid it will respect is the closest one to the slam move (ie C).
I didn’t know what timeframe or pair your examples were from so here is an example i picked at random from today showing the multiple grids.
Hope this helps!
Oh, stop!
Actually, I like this option the best. It reminds me of something a successful trader in some book once I read said: Don’t smell the charts. Ie… If you can’t spot a set up from about 10 feet away, it’s not a set up. Besides, I don’t think any self-proclaimed newbie should be taking “fuzzy” set ups anyways. Crystal clear = better odds in my very newbie opinion.
Right there, ya lost me, for the above reasons.
Immensely. Thanks!
Okay, I lied… One more question?
As you know, some pairs are very similar in their movements, for example, the GU and the EU have often moved in tandem. I’ve often seen the same and simultaneous set ups on the GY and the EY. My question is: Do you take them both if they both fit your criteria?
One of my rules is that I don’t take duplicate set ups on two separate pairs if the pair is moving in tandem. Trading duplicate set ups seems a kin to making the same bet twice.
What are your thoughts on that?
Yup… The EURUSD and the USDCHF typically form the same setups at the same time as well.
I take both personally. There is an argument both ways here, that your exposing yourself to the risk 2x’s and that the better thing would be to only take one of them, etc.
My personal view is that while the same setup forms, they may perform differently.
I can’t tell you how many times the same setup forms, I take both, one stops out at par and the other gets the target. So I take both. Each market, while they can show the same setups still move independently of one another and its not a “sure thing” that there will be 1:1 correlation between like markets EVER so I typically will take any trade, on any market, that shows up to be valid.
Another great question BTW!
Thanks!
By the way, nice job silencing the troll in the other thread
Lol… Thanks 
Hey Daedalus,
Haven’t seen any new trades on your blog… Have you decided to take off from trading for a while, or have there simply been no set ups?
Dahlia
Lol…
I’ve been working on something. I’m getting back into trading the S&P Futures e-mini… so i’ve cleaned out my FX accounts to put into my futures account for the time being which means no FX trades for me.
I’ve been trading relatively small size in the FX markets for sometime and frankly i’m getting sick of making relatively small amounts of money. So i’m gonna go back to where I started all of this madness and give the S&P one last shot and try and make some real coin.
Its a really big deal for me because I know I can make GOOD money but I just feel like i’ve been spinning my wheels for months playing around with mini lots. So i’m just gonna put it all on the line, give it a shot and see what i’m made of.
I plan on putting an update to the blog today or tomorrow. I’m prepping in sim for my live expedition through the end of the month and will be placing the first trade on January 2nd of '09.
Sim from the past month had profits of over 7k/contract, or about 120% on the initial deposit. So i’m gonna try and replicate that with some real dollars and get on with living life how I want.
Cheers!
Good luck Daedalus, and in case it means that you won’t be showing up on the Forex forums anymore: thanks for the difference you’ve made in my trading and we’ll miss you
Good luck from me, too. It’s thanks to this thread of yours that I’ve started learning how price moves and how fibs help me put numbers into it.
my experience with Fib levels , is that they are very randomly accurate , so i devised a different set of levels , prime numbers : 13 , 17 , 27 , 33 , 47 , 51 , (66 this is a very important number ) 77 , 83 , 91 , 01
This numbers very often are extreme numbers , and price changes occur .
I used to use Marc Mcrea Fib Surefire system, biggest problem is that when the “trend” is formed, it reversed 70% of the time. I had 20% success with Fib, not my game.
I really like fibs but didn’t have much success with them either until I started trading fib patterns which signal and trades at the end of a trend. Maybe you’d like to give them a try, because as you said, trends seem to reverse 70% of the time, and that’s their success rate. We have a thread dedicated to them…
http://forums.babypips.com/forextown/21934-30-pips-day-keeps-your-money-bay.html
