Quote:
Originally Posted by Jonnyislost
Yes you're right 
I rarely use fibs, So subjective, and can be easily curve fitted to show whatever you want them to show
The large bar + BRN + general location would have been enough for to take the trade
J
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Hello Jonnyislost and nycc. Fibs can be a valuable part of your trading toolbox if you know how to use them. Everyone should use them as simply a tool for measuring high probability. High probability is learned through practice and backtesting and in my opinion is combined with solid PA for the best results. Everything begins with PA is how I see it. I am partial to .382 extensions. I'll show you a couple of set ups that I use with success. They are used with the spirit of simplicity that is taught here on J16. BTW, I'm not trying to promote or defend the use of fibs. I'm just contributing to the discussion.
Three charts: The first illustrates how I use 1 bar (engulfing/pin/outsidebar) and fib for gaining profit. The next chart illustrates an opposing pinbar set up that I also have been using very successfully.
On this scenario, I will wait for two consecutive and opposing pins to print on any timeframe. When this happens, I will fib the range and apply the same strategy as I do with a single bar. I have only used opposing pins with no bars in between. Of course, your risk reward is directly proportional to your entry. Always wait for a break before even considering taking a position.
Best of trading to all.
K.I.S.S.
