Determining Objectively the Overall ‘Trend’ For specific week
Since I’ve touched D1 Macfibo, I might as well give you a quick preview how you can use D1 price action or as I always like to say “Knowing the story”. Yes I call D1 as the “Main Storyboard”. I every overall story there is plots and subplots etc etc… whatever… hehehe…
I’ve said before that I never trade “Trade Macfibo H1 signal according to the bigger timeframe Macfibo”. It is true. I never trade that. But I do use big TFs to help me to futher smoothened my Macfibo trades. I will not reveal as of now what the exact TF, exact timing and exact conditions of this advanced version… yet. But I am going to show you how I use the D1 to further filter out my Macfibo
*again… D1 is just an easy example. The exact TF that I use for storyboard, entries, conditions etc will not be covered yet… I want to reveal things one thing and one phase at a time. Majority of the readers here are Newbies so my audience are for the newbies… I want to help them
Moving on…
Identifying S-SR Line and Technical Sentiment
Take note the blue marks and vertical lines. If you notice there is no 20sma on D1 (Storyboard). My story board uses 5ema and 8sma, as for directional purposes… aka “Technical Sentiment” or TS. Identifying S-SR is also important and applied here in D1 too. So the S-SR here acts like a ‘magnet’ or ‘checkpoints’.
It is simple really. When 5ema cross 8sma to the downside AND there is space until the next S-SR Line, then I will set my TS as “Sell”. My 70% focus will be mainly on Sell Macfibo Signal in xx Timeframe, and 30% focus on other signal (well there is only Sell and Buy right? kind of silly statement there…). This “focus” based on TS will determine my risk management.
This is totally different from the basic Macfibo and 1.1 Macfibo. It requires a little bit more experience and knowledge of Price Action. Yes… 5ema and 8sma is just an aiding tool. It’s 60-40. 60 for price action, 40 for the aiding tool.
Summary :
1- TS shows “Sell”, I trade mainly on Sell in specific timeframe. Vice Versa
2- S-SR Line applies too.
Macfibo Fun To Do This Asian Session :
Go D1, plot 5ema 8sma crossovers since the start of the year until the most recent crossover. Apply Macfibo Fibonacci as you would do to 5ema and 20sma crossover. What have you noticed?