Fibonacci v. Manual S&R

All:

As part of my forex education and demoing I am studying the use of fibo v. manually inputting s&r levels and which is more reliable. I have listened to Sam Seiden, Mike Baghdady and read John Person. They all have varying opinions and ways to look at each. My question to you all, especially a seasoned trader, is which do you find more reliable: manually inputing s&r levels, fibonacci levels, fibonacci pivot points, daily pivot points?

My reasoning for asking is simply this… I am a newbie developing a method of trading on 1 hour charts for the cable, sterling and green back. All of this of course with the guidance of a mentor. I have to do the leg work and part of that is to perhaps is to take a poll. I would love to place a mechanical poll on the board but I’d rather read what you have to say about each.

I thank you all for your input and GOOD TRADING!!!

David

support and resistance and fibos are both valid tools for analysis, you should use them both together.

Forget about debating which is better then the other, concentrate on finding what works for you to help you formulate your personal trading plan.

N

Dear Gravitas

Thank you for your question and the way to correctly answer your questions about drawing Fibonacci levels and S&R etc

Is to first point you the right direction

Any point on the chart could technically be considered support , resistance and if the market is pulling back or retracing then you can draw a FiB retracement etc

But as a trader you need to be able to act and make a trading decision fast

You have 2 main responsibilities
1) Never predict the market direction simply because no Human being could therefore only the Take the high probability trades
2) Identify your exit point if market does not move your way or your Risk
3) You need to be able to collect all the data from the charts , analyze it make a decision and act !

Therefore you must keep it simple

Having said that , let me share with you a couple of techniques

  1. FIRST Identify the market condition , if
    i. Trending (up or Down) then Plot you Fib since you are looking for retracements
    ii. If consolidating then look for support and resistance

You cannot trade all market conditions in the same way using the same rules that would be a folly, it’s like drive your car on a highway if the roads are clear you can drive 60 MPH and if the conditions become congested you have to slow down and maneuver otherwise you will have an accident.

So my advice to you is identify first what is the condition of the market you wish to trade then you can decide on what you need to plot on your charts

In any case, I conduct a weekly Trade planning session every Sunday at 19:00 GMT where me and my traders plan our trades for the following week and you can see how we do answer all your questions in a practical live session.

[B]If you like you and anyone els who read this message in time are welcome to attend December 13th session as my guests and for no charge just drop me a line and I will send you the link and the password[/B]

I hope you would find this info helpful

Kind Regards

Mike Baghdady

Mike,

First, thank you very much for the opportunity to join you on Sunday. Secondly, thank you for providing an awesome answer to a lingering question. I’ll take the time to go back through my notes from your previous lectures posted on the “other” site and plan to meet up with you on Sunday.

Thank you,

David

[quote="mike …any case, I conduct a weekly Trade planning session every Sunday at 19:00 GMT where me and my traders plan our trades for the following week and you can see how we do answer all your questions in a practical live session.

[B"]
If you like you and anyone els who read this message in time are welcome to attend December 13th session as my guests and for no charge just drop me a line and I will send you the link and the password[/B]

I hope you would find this info helpful

Kind Regards

Mike Baghdady
[/quote]

Nice to see you posting here Mr Baghdady!

I’ve watched your videos over at fxstreet and you teach good material.

I think both are inclusive of each other.

Plot some support/resistance lines, then plot some fibs and you’ll see how they match, then do the opposite.

To me fibs already contain recent and not so recent support and resistance levels, maybe they’re a lazy alternative to spot manually the lines.

Just my 2 cents.