I just wanted to show every one some alternative ways to enter these trades and avoid some large draw downs. I have attached 1hr EURGBP chart for review. We have drawn our descending fib on the 4hr chart from A-B. Price has started to go up from point B and we wait for it to hit the 38 Fib level and the 61 Fib level. Here is what I do to try to avoid some of the draw downs. When price gets close to the 38 fib level rather than entering blindly at the 38 Fib I drop down to the 1hr chart and look for price action to tell me to enter short. In this case you can see that price just blew right threw the 38 fib level. So now I wait for price to get to the 61 fib level. As you can see price never makes it to the 61 fib level. It actually tests the 50 fib level 3 times. This tells me that we have a significant resistance level at the 50 fib level. At this point we have a down trend fib drawn and we are looking for a short trade but we don't have any price action at our entery fib levels of 38 and 61. Now here's what I do, when price moves down and breaks the 38 fib level I wait to see if it re-tests the 38 fib level and if it does I enter short. Now if you missed that entry I have indicated 2 other entries with red arrows. Break of the trend line and break of last weeks low. Hope this helps some of you.
Discretionary entry help
Thanks for your explanation on how to use fibs and entering trades using discretion.
So far, I've been entering trades at the fib lines "blindly" - partly because of the ease of it and mainly because of the time zone where I live.
However, I am beginning to realize that using discretion and employing price action techniques should be the next step after getting the fibs drawing part right.
I had a 38.2 "blind" long trade on $/Y - I'd appreciate if you can explain to us how you'd have traded that using price action confirmation on H1 charts.
Again my appreciation goes to all of the members helping others learning these techniques.
Have a great weekend.
Well, i think that this thread has just a few active members ( i myself had been away, for family problems as i explained) but i am thinking on opening a chat room for the active readers and contributors of this thread, please PM me those who are interested, so we can discuss the trades in real time and keep improving ourselves, blessings
Ended this week with -300 pips since the AU trade i entered at 38.2 and 61.8 hit the SL. Let's see what the next week brings.
USD JPY Charts
I had some time today so I went through how I would have approached the USDJPY chart on Friday, 6 March.
Ok..the first chart is our daily chart. The main trend is down and price is in a pullback (yellow arrow). Typically in a downtrend this is what you are waiting for, a pullback against the main trend so we can enter short. The other thing to note on this chart is that the current up swing has gone higher than the previous peak before the last swing low formed at 87.15. This PA is just giving you a warning that there is a possibility of price going higher instead of going back down.
Drop down to the 4hr chart now. Notice we have a double bottom which typically suggest price is going to go up, which it started to do. I pulled a fib from bottom to top on the last swing low to swing high. Notice that price in the current swing high has gone above the previous swing high in the downtrend (blue circle). Price pulls back to the 38 fib level and goes up from there. So that leaves us with the question "How do I determine if price is going to go up or down from here and where do I enter my trade.
So when price action gets close to our entry fib levels, 38 and 61, I drop down to the 1hr chart. On the 1hr chart you can see that price dropped down to the 38 fib level and bounced around for several hours. Now, you can enter a long trade as soon as price hits the 38 fib level and hope that it goes up from there. There are many times you will get a wining trade by doing this but there are also many times the price will keep traveling down through the 38 fib. In this case, we watch price for awhile and we don't see any kind of momemtem bar as price ranges for a several hours. So the blue rectangle becomes our decision level and we wait until there's a good reason to take a long position. Finally price breaks above the 90.94 level and you can do one of two things, jump in with a long position as the breakout happens or wait for a retrace of the breakout and get in when you see a bullish candle going north after the pullback.
Just a word of caution on this set up. A long trade is against the main down trend so don't think that price won't turn around and resume the down trend at some point. In this case I would not be looking to capture a 100 to 300 pip move north just because it's against the long term trend.
I hope my explanation is helpful.
Well said ozziedave. You and I approach trading in the same terms. I tried to p.m./email you.
When you have the time pm me or email me...I think we have much to discuss.
hi robby, interesting system. were these valid trades?
thanks sounds like a good idea. how long u been trading live like this?
I've been using fibs, S&R and PA for a year now. All I am trying to do is show the entries that Robby uses but looking at them using S&R and PA so you can avoid large draw downs.
Is any one trading it? Robby what happened to the chat room you were talking about
Hello guys, i am really sorry for not posting, i had some family issues that kept me away from posting due to lack of time, i have been successfully trading the method, some losses but those were because i was away and i couldnīt manage the trades, but overall i am winning, i will be starting to post again, mostly the trades that i will take, because i think you all have learned the system very well, 4H Fib retracements, pivot points, and supply/demand, those are the main things to watch to enter trades, anyway i will be posting screenshots explaining why the trades are taken, regards and thanks for the support
So glad you are back. We still trading only on the fib retracement.
I look through the thread again. I dont think you really discuss much on the
used of the pivot line(on the 1 hour) and supply and demand. Still dont know how that is going to help on the fib retracement.
Glad that you are going to post more for our reference if your time permit.
Thanks for this good technique.
I face one problem with this technique which I hope you people can help me.
How to filter trades? meaning how to know how probable price will bounce at the 38.2 level?
And when is the best time to draw the FIB level?
you can pending small size lot @ 38.2 and pending another lot @ 61.8 ,
so if 38.2 fail dont close position and wait second pending open @ 61.8 ,
just idea it may help you
thx for ur idea, another thing, how to know the trend? do u use dailyor visual or higher highs?
would like to trade wif the trend
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