FIBO Candle Projection

Ok to begin, this pattern is to be used for potential areas of where price will go. I will explain the basics of the pattern in the first few posts, then expand on potential ways to act with price movement.

To begin we look for Aggressive price movements where we have x number of candles in a row. It doesn't matter how many candles in row but its more about the price movement of the candles compared to previous price movement.

Example if price is moving within a deviation of 100-250 ticks, back and forth, then we get a price movement of 400 ticks with 5 candles in a row, this would be considered for price projection. we then draw the fibo area with a 142 projection.

This is the simple form of the pattern. Of course price doesnt always hit the 142 but instead will reverse these ideas will be covered in the following posts.

Example 1:


Example 2: In the second pattern you will notice price never broke below the LOW. but instead reversed hitting the 142 on the opposite side.

Shared

thanks man

i wont look at this now because I am at happy hour with several hooligans, but have subscribed to your thread and will review when im sober!

i will say that it take a big man to share the machinations of his brain; therefore this posting is much appreciated

cheers

interesting.
hi cogsx86, how to draw the line ?

90% of people, are wrong about 90% of everything, 90% of the time...

u are right and 90% of ppl wont know what u want to do in reality with that statement

love charts look like that clear, "simple to understand" can you share indis, tools and tpl? worth to try watch, thx

Dear COGSx86,

That is a nice idea, thank you for explaining and sharing the pattern.

Van Slobbee, this is the Fibonacci retracement indicator that is standard on most platforms.

COGSx86, please correct me if I am wrong, we need to add a -0.42 and 1.42 level to our fib tools in order to get the same lines/ levels.

I was wondering if the success of this pattern playing out is determined by how far the price first retraces, as you see in your first post, first image, the price goes up to 0.382 before going down to your 142 (-0.42 fib) target.

A sister of this concept is the ABCD pattern I think, where there is a target 1) -0.272 and Target 2) -0.618 target at the D point, with some specific rules to follow. Hmm and adding both and getting average; (0.272 + 0.618) / 2 = 0.445 which is very close to your target of 0.42, very cool.

Kind Regards,
Tzamo

At this point in time I wont be sharing any indicators, to avoid traders taking the easy way out. Using the hand drawn method works best and your judgement. Relying to heavily on indicators can result on the over reliance on the indicator, removing the critical thinking needed for when price has reached the outer limits of the market. No pattern works 100% of the time and traders must learn when to use these patterns properly.

To further this, as the title says "projection". This tool is suggested not to be used as an entry tool, unless of course you have deep patience. The concept is for extending Take Profit points, only after solid entries which have occurred in the early portion of a trend. As a trader, and you begin to study this concept you might begin to use it as an entry tool, with the proper tools.

I will do my best to describe the following patterns and you will see why its best for adjusting TPs or possible exits from current positions.

Pattern #1) We see the aggressive movement giving us the 142 projection with box 1. However price never pireces the low, with an aggressive move to the upper side of the pattern. Creating the new aggressive move, box 2, where price moves to the upper 142.

Pattern #3) This one is interesting because not all candles are formed in a single direction, but the move of the aggressive candles dwarfs the small reversal candles and once we get the 2nd reversal candle the pattern forms. If for example you include the 2 blue candles and then used the following 2 red candles, your 142 would be the blue line at the bottom of the chart, which price never hits. I left that blue in the picture to show this.

Pattern #4) Aggressive move but it forms within the 142 projection of pattern number 3, when this happens its best to avoid the pattern.

Pattern #5) Pretty cut and dry, but also notice where it occurred with relation to the overall price. At the lower end of price movement, giving room for price to continue on to the -100 (or 200) price point.

Here is something, while unproven, may be very profitable if you can make more sense if it than I. Buy low sell high/ sell high buy low. The indicators are available freely. The brains to make it work belongs to YOU> Please tell us about it!

Hi Barry,

Can you briefly just explain the above indicators and how you currently use them.

Cheers

Take a long or short when the HA turns the opposite colour at the blue lines. TP at the white line or when the candles turn a different colour again. Very much a work in progress, so tell us what you can find that works please. You can also add the Dynasty indicator, BUT: No entries between the green lines, and they all repaint.

Coincidence I think not ! See where price bounced?

Off of a trend line set 4 weeks ago but also.........142

Hi man, what happened with this TS? I see you are still active member... https://www.energyexch.com/cogsx86
So am wondering what happened or is happening with this TS? Any possible TE/EA based on it? Tnx

Hello,

Using 25% increments to fin find Targets in the vast ranges of market structures can be very useful.