USDCAD 1 hour I have now seen a hopefully good setup
As per chart red is stop loss and green take profit, obviously in between will take half profit?
Ignore second image it was the one which was very small I tried editing it
As per image you will see I have in circles where I think is a good lo and hi point for my set up
What do you guys think?
Second one I found I might think looks good is AUDUSD 1hour chart, I might be wrong with the high though so hence me asking the question.
As per image again yellow line is trigger red stop loss and green take profit… does this look reasonable or good enough to take the trade or perhaps take the previous high?
That looks interesting seeing as your resistance became support already… I think a nice trend to follow from there, just my two cents though…
But according to price action this might be a good set up though.
Hi Ice, you raise some interesting points which I’d like to contribute to. I’m off out to a meeting this morning but will chip in later when i get back
I don’t use ZZ_Orlova that much now. I used it more when I was new. I found it great for ranging and sideways markets. If you count the points that are showing up, you can see how strong your resistance levels are; down are support. It’s just a fast way of getting a picture of support and resistance. At some point which is different for everyone, you won’t need 80% of the indicators you might be using now. After enough trading you’ll be able to look at a chart that’s bare and see if it’s what you’re looking for. For example I use a Fibonacci strategy for my trading. I want to enter between the 50% and 62% levels. I want my stop loss to be at the 72% level my 1st profit target is the 0 level. When I first started I used both fib retrace and ext tools. Now I modified my a standard retrace to include the 3 most popular extension levels. So now I use one fib tool instead of 2.
Time frames as well are different depending what type of trader you are. I’m a short term trader more than long term. Which means I want to be in and out of a trade between the NY exchange opens and the London exchange closes. I will hold longer if my trade is positive and now showing any changes. There are other traders who trade the longer time frames 4, 1hour etc. That means they are building positions and holding on longer. Which ever time frame you choose, you should confirm with at least one shorter or longer time frame depending on how long you intend on holding your trade. Me I start with the one hour to map out my fib strategy. Then I drop down to the 30 minute to verify my entries, stop loss and take profits. If everything is in line, I drop to the 5 minute and execute the trade.
One of the best pieces of advice I got since starting in the forex came from Jonathan Fox. He said in one of his video’s “Always let the market come to you” Following that advice will make you a better trader and a more profitable one. Almost all my trades are done by pending execution, very seldom market execution.
So for me I start trading with going through the daily news to see if anything major happened over night that may effect currency trading; good or bad. I go to my trading platform which default is set for 1 hour time frame and start to scan currencies. My default is set to quickly allow me to scan currencies by using swing hi and low indicator . You can use Bollinger bands, ZZ, Any indicator that will show a channel. At this point all I’m looking for is a pair that I can apply my fib strategy to. Once I see a potential trade. I draw my fibs to see if it does. If it does, I drop down to confirm if it does I drop down to make my entry. After that I use the 3 time frames to manage. As I said start with a demo and practice and practice and after a while (which is different for everyone) you will be able to see if you want to trade or not with a quick glance. The trick is take your time now to learn and build a strong foundation. Once you have that, you’ll be able to do the things you need to do to be profitable. Good Luck
Gp
If you’re not sure. Draw your fibs the way you have done. Drop down a time frame and see how your stop, entry and profit targets. You can also do another fib reading and see if anything overlaps But looks to me like you’ve got the hang of it.
Gp
Nice setup gp, quick question, do you use heiken ashi on all charts, or do you just change it up for some other reason??
Surprised there is no volume on the charts.
Pretty hard to trade S&R without taking tick volume into account especially with USD/CAD a very close pair. Hope the trades went to plan.
I use Heiken Ashi on all charts. The trader who I followed when I first started used them, so in order to follow his trades, that’s what I started with. Both use the same info they just calculate it differently. I found that I got less false signals with Heiken Ashi especially short term.
I get what you are saying, I do apologize again for all these questions, just I am trying to get my head around this whole setup.
So with heiken ashi, does your winning trades make up for the ones that don’t go your way?
Same rules apply? Ie, for a downtrend you draw fib from high to low?
As per this one you have shown this morning where I am looking at it now it has gone past your MA and moving upwards, so basically no trade here or what does yours say?
I assume all brokers also use different spreads etc, as I am with Hotforex, their spreads seem okay though, but if I were to place a trade as per this drawing I would of been stopped out by now?
I do use a volume indicator, stochastic and a couple of others during my analysis, but to keep charts reasonably clean so it’s easier to see how the fib tool works , I left the others out. This trade went well. I wish they would all go like this but they don’t. I’m playing catch up from earlier in the week.
Anyway the plan here was to Enter short at the 50% retrace (.87206) at 23.6% ( .87113) I changed stop loss from 72% to trailing stop went for a coffee and by the time I got back I had been stopped out. About an hour later I went back and took another look and based on the 1 hour and 30 minute time frames I decided to enter long with a pending order at 50% retrace( .87228), stop at 72% 1st take profit at zero level and I added a trailing stop at 23.6 and so far so good.
No need to apologize. When someone asks you questions like you’re asking, by answering I not only try to give you some help, but I reinforce my thoughts as well. This particular trade today went pretty good so far unfortunately they all don’t work like this. The goal of my trading method is to give me more profits than losses.
If I enter on the 50% retrace level, place my stop at the 72% and my 1st profit at the zero level on mine or 50% on the fib extention, The potential risk to reward is just over 1:2; If I enter at 61 with stop at 72% and 1st take profit at the zero level on my fib tool I’m potentially risk to ratio is over 1 to 4. I’ve done so many trades like this between demo and live, I don’t want to trade any set up but the ones I have said. When I first look just after NY open and there’s nothing that is setup, I don’t care, I won’t take a trade until I find the setup I’m looking for. I have never gone a day where something has not set up the way I want. Even with all that tech, fundamental and sentiment analysis I still have losing days. The thing is to be consistent with your method, after that it’s up to money management, patience, discipline and the trading gods.
Sorry I’m not sure I understand you. I entered my setup at 10:30 am, are you saying at 3:24pm it changed direction? and if I had stayed in I would have been stopped out? You’re right. However I entered a trailing stop and then went back in. I don’t set and forget on shorter time frames. In the lower time frames there’s a lot more movement and too try and take advantage you have to manage your trade
Okay so as per where you had your fib levels in, I went one further and placed fibs on 4 hours then as per image scrolled down to 1 hour chart on USDCHF and basically we are looking at a downtrend at the moment though( I think)
So i placed entry at yellow line and red line stop loss, hows this look?
My apologies I jumped the gun there a bit…
I understand now what you mean, so for instance you prefer lower time frames?
Is it safe to say that I can draw fibs on 4hour time frame and trade it on the 1hr as I did with my previous one or is this not acceptable?
As per my image also I have gone up to a higher level and inserted a Fib line but also am wondering now if maybe I used too high a high so to speak…
That’s what I like about the fib tool it works on all time frames and all pairs. I found so far that you get more positive results by using at least 2 time frames. Doesn’t matter which ones, but again I found that if you use the 4 hour once you draw your fibs, drop down a time frame and see if you missed anything. I know a trader who uses 15 and 5 minute time frames. Personally for me that is two short, and you miss a lot of potential, but that’s my opinion. If you like the 4 by all means use it. Just remember especially on the longer frames, give the market time to work.
Thanks so much for the help and patience, once you draw fib line I have found more often than none it actually lines up with some S&R lines which then makes me think there is somewhat potential.
I might be wrong as am obviously still learning but when I placed fib lines on the 4 hour I have found two entries for the time being.
I got two long entries on NZDUSD and USDCAD.
I wont be awake to watch them and sell half my lot as it is now time for bed so have my take profit in place but also have a trailing stop behind both of them, I am only running about 6-7 pips behind them for now and once more confident and actually have trades during the day I will be able to watch them for longer.
NY session is about to end anyway or am I out by an hour or so.
My broker normally sends me an email about when times change so am assuming I am still on the ball 
GP again thanks for all the help and support it is hard to find these days.
I am sure I will press on your button again for some more tips
Have a great day