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ozziedave Feb 6, 2009 4:23am | Post# 221

Alternative Entries
 
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Hi Guys,

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.
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denverdude Feb 6, 2009 10:24am | Post# 222

Discretionary entry help
 
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Ozziedave,
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.
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robby2007 Feb 6, 2009 6:35pm | Post# 223

Hi Guys,

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....
Hi Ozzie, thanks a lot for your explanation, it is totally valid, i have tried that way and unfortunately i didnīt have better results, i have been testing, and came out with this solution to the MM, we have to trade 0.2 lot, close half of the trade at 40 pips to secure that profit, and let the other half run till +100 or close at BE, it is the best way at least for me, because when i try to trade based on price action my head plays me real bad, eighter i enter late or not enter at all, so the pendings is my thing, besides i have been doing very good with the system as it is right now, so i am going to stick to my rules, hbopefully next week i will have more time to trade and to post possible trades here on the thread, you are welcome to keep trying to improve, others here might like the way you are doing things and profit as well, after all we are a helping each other community, and i thank you very much for this, all your thoughts are welcome.

robby2007 Feb 6, 2009 6:38pm | Post# 224

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

Robby

AndsX Feb 6, 2009 9:35pm | Post# 225

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.

ozziedave Feb 6, 2009 11:23pm | Post# 226

USD JPY Charts
 
3 Attachment(s)
Ozziedave,
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...
Hi Denverdude,

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.
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golferfx Feb 7, 2009 10:09am | Post# 227

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.

golferfx

eagle_eye Feb 8, 2009 4:46pm | Post# 228

hi robby, interesting system. were these valid trades?
Trade updates: Most of the trades are closed because of TS

Closed Trades
Sell AUDCAD (38.2) -120
Sell AUDCAD (61.8) +72

Buy USDCHF(38.2) -70
Buy USDCHF (61.8) -100

Sell EURUSD (38.2) +45
Sell NZDUSD (38.2) +12
Sell EURJPY (38.2) +76

Trades in
Sell AUDUSD (38.2) +1

Total : -85 pips

Here are the charts.

eagle_eye Feb 8, 2009 5:02pm | Post# 229

hi,
thanks sounds like a good idea. how long u been trading live like this?
thanks
Hi Denverdude,

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...

ozziedave Feb 8, 2009 5:19pm | Post# 230

Fibs
 
hi,
thanks sounds like a good idea. how long u been trading live like this?
thanks
Hi Eagle eye..

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.

ForexDude Feb 8, 2009 9:02pm | Post# 231

hi,
thanks sounds like a good idea. how long u been trading live like this?
thanks
x biz must be hitting you badly, man.. i see you very very often in this board.. looking to move on to another business?

eagle_eye Feb 10, 2009 7:26pm | Post# 232

x biz must be hitting you badly, man.. i see you very very often in this board.. looking to move on to another business?
I just try to keep the threads going. You have been a member longer than me, so if I'm being hit badly, you have probably blown your account few times already. I actually do this part time as I have a main job. I wish you the best. Please try to keep posts relevant to the system discussed in this thread.

AndsX Feb 11, 2009 7:00pm | Post# 233

Is any one trading it? Robby what happened to the chat room you were talking about

kareem Feb 15, 2009 9:47am | Post# 234

Hi Denverdude,

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...
I'M MAKING MY ENTRY DECISION ON SUPP. OR RESIS. AROUND THE 38 & 61 AREAS IF UNDECIDED I WILL GO WITH THE TREND, I USE THE 15MIN. WITH A 20 PIP TRAILING STOP,U NEED STREAMING NEWS WHEN TRADING ON THE 15MIN.

robby2007 Feb 23, 2009 9:36am | Post# 235

Iīm Back
 
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

jinsen Feb 23, 2009 9:10pm | Post# 236

hi robby,

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.

reg
jin

forexlearner Feb 24, 2009 8:49am | Post# 237

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?

WedWed Feb 24, 2009 10:46am | Post# 238

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

forexlearner Feb 25, 2009 12:08am | Post# 239

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

robby2007 Feb 25, 2009 7:56am | Post# 240

hi robby,

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.

reg
jin
Hello Jin, it is amazing, it has been two weeks that i have been sleeping all night and now i canīt wake up to trade LOL, well use the pivots to see if there are any overlapping fibs, also the supply/demand levels helps you get out or in, the same, if there is any near the fibs or get out in this levels
regards
Robby


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