Macfibo system

apfrezza · May 14, 2012, 3:05am

I have another question.
If 5ema crosses from top the 20sma and we won a trade…then we should look to secondary signal. But, my question is: should we look only for short trades or also for long in case 5ema crosses from below the 8 sma?

sufiansaid · May 14, 2012, 3:34am

First of all,
If price above 20sma, look for buy signal only.
If price below 20sma, look for sell signal only.

Second of all,
read the ver 1.2 guide.

All of this are basic and fundamental question, all covered in the guide document. Happy trading.

vessel18 · May 14, 2012, 6:17am

"RKStelma":

Hello Sufian

I have been reading through this thread from the beginning and love the work done and the great responses and feedback you have received. Earlier in the thread you stated that you don’t know if you are a good teacher. IMO A good teacher is someone who creates an atmosphere where individuals are inspired to learn on there own and participate fully in the learning experience and you have more than exceeded this definition, so job well done and congrats on winning the competition last month!

I am looking at possibly taking this trade on the USD/CAD if the close of the next candle signals a cross, but am not sure which of the candles (out of the two highlighted areas) should be labeled point B. Could you provide your input? Thanks again for providing this system for newbies like me!
<img src=“301 Moved Permanently”/>

Hope you managed to take this trade in the end. I got on it this morning and took a swift and tidy 20+ pips.

RKStelma · May 14, 2012, 2:57pm

Ok get this. I take this trade and start getting sketched out because when the 5X20 happened, the 5EMA was still under the 8SMA. I didn’t know if this qualified as a correct entry and so being over paranoid, I exited last night for a 7 PIP loss. I now know that that was a mistake. :’( Oh well. Live and learn. I then entered a long trade for a 20 PIP gain this morning on the GBPUSD. So overall my screw up didn’t cost me too much.

sufiansaid · May 15, 2012, 1:59am

For Macfibo Main Signal, you do not need to worry about 5ema’s positioning with 8sma, except for exit triggers. It was a valid signal. Try to follow the rules next time buddy (assuming you exited the trade based on ‘gut feeling’ and entering the long trade based on ‘gut feeling’). It is understandable to be anxious, nervous, fearful etc etc… gain experience from manual backtesting on top of forward testing.

sufiansaid · May 15, 2012, 2:00am

Very nice.

sufiansaid · May 15, 2012, 2:33am

[B]Incase some of you are wondering why I haven’t been posting System Updates. I am working on two things :

Compile some questions asked in the forum and documented it into MACFIBO FAQ
Writing a guide : MANUAL BACKTESTING MACFIBO SYSTEM

So do forgive me for the lack of System update but I will definitely will check the forum everyday and answer questions and comment anything needs to be commented. Keep reading, posting and testing macfibo system. Cheers.[/B]

TyrannosaurusForex · May 15, 2012, 2:29pm

Greetings Sufian,

I’ve read over this entire thread over the past few days and I’ve begun manually backtesting MacFibo. The system and your statistics look fantastic!

I have one question. For charts/brokers that use 5 digit pricing, do you use pipettes to determine if a cross has occurred or do you wait for it to cross by a full pip?

Thanks,

Nick

RKStelma · May 15, 2012, 5:41pm

Tyranno,

I believe that the deciding factor for the cross is whether or not the candle stick where the cross is occurring is Closed. So as far as the number of decimal places goes, it shouldn’t matter so long as the candle closes. (More knowledgeable forum participants feel free to correct me if I am incorrect). I hope this helps!

Kyle

sufiansaid · May 16, 2012, 1:05am

Cross by a full pip.

sufiansaid · May 16, 2012, 3:23am

Confirmado:

If you’re talking about EURUSD, then the matter is the ranging Friday, I would say, if you take a look at the whole picture:

I’ve marked two green lines acting as support and resistance (resistance more like a zone though) for the day, you can see that the closed candles were ranging strictly between them and the difference is only 29 pips (!), while the max range (between lowest low and highest high) is 53, not that great either…
The volumes were quite average on this day, although the highest volume was 1,5 times less than on Wednesday, but generally we know that activity on the market decreases towards Friday.
Basically, I didn’t take any Macfibo trades on this day, after I’ve seen the support and resistance holding first few times and noticing that the price was ranging and my day ended up scalping some pips using VSA.
However, I’m not promoting to use this stuff (especially to new traders in this thread) along with Macfibo, Macfibo is Macfibo and VSA is VSA, but just providing my reflections about Friday and why it could have led to fakeouts with Macfibo.

Pretty advanced analysis there. Good read that.

alfa2 · May 16, 2012, 4:21am

Confirmado:

If you’re talking about EURUSD, then the matter is the ranging Friday, I would say, if you take a look at the whole picture:

I’ve marked two green lines acting as support and resistance (resistance more like a zone though) for the day, you can see that the closed candles were ranging strictly between them and the difference is only 29 pips (!), while the max range (between lowest low and highest high) is 53, not that great either…
The volumes were quite average on this day, although the highest volume was 1,5 times less than on Wednesday, but generally we know that activity on the market decreases towards Friday.
Basically, I didn’t take any Macfibo trades on this day, after I’ve seen the support and resistance holding first few times and noticing that the price was ranging and my day ended up scalping some pips using VSA.
However, I’m not promoting to use this stuff (especially to new traders in this thread) along with Macfibo, Macfibo is Macfibo and VSA is VSA, but just providing my reflections about Friday and why it could have led to fakeouts with Macfibo.

What is VSA please?

alfa2 · May 16, 2012, 5:32am

Bro Sufian, a question.
When exactly should we close the position if there is a 5x8?
In the very moment of the crossing or we should waite until the close of the candle in which the cross happened? I ask it because I get an alarm if 5x8, but when I reach my PC after some minutes the situation often changes and there is no crossing anymore. Then there is a hesitation to close or not to close. What is your experiance and advice?

Confirmado · May 16, 2012, 6:49am

Volume spread analysis

Confirmado · May 16, 2012, 6:50am

Wait for the candle close to confirm the crosses of any indicators

mylos · May 16, 2012, 7:35am

Sufiansaid for H1-H4 the setting of macfibo are the same?

apfrezza · May 16, 2012, 8:47am

I would love someone is online now to answer my question.
In this exact moment (14:37 16 May 2012 Rome time) it seems that is happening a cross for 5ema and 20sma on eur/usd.
Should we try the buy…or perhaps is a little bit too risky buying euro nowadays? The 161,8 would be quite far (almost 50 pips…). Now is almost one day without trading for me and so I’m a little bit hungry…Anyway I still must wait for 23 minutes now…and euro is growing…

PingPong · May 16, 2012, 8:52am

I guess the idea is to WAIT for the cross, and the confirmation is NOW!

TyrannosaurusForex · May 16, 2012, 10:55am

I also got in on this EURUSD 5x20 cross. TP is 1.2786 and SL is 1.2706. I also am shooting for the 261.8 fib extension at 1.2852 with 25% of my position.

TyrannosaurusForex · May 16, 2012, 11:07am

I’m also only using a demo account too, Johnny. I probably won’t trade with real money for at least six months.

On the news side, it looks like the FOMC meeting minutes will be out in about 3 hours.

And I was typing this, the trade went south very quickly. Oh well, time to look for the next one.