The Fibonacci channel projections (FCP)

A simple and elegant system graphic analysis for trading on any currency pairs and any timeframes. The FCP system is based on a graphic display of the psychology of market participants, expressed in the interaction of prices with TL, S/R, Fibonacci levels.

Advantages of FCP:
- Simplicity and, subject to proper money management, reliability.
- The ability to adapt to your strategy.
- May be in addition to your trading method.
- Versatility - any pairs, any timeframe.
- Clean charts.

FCP disadvantages:
- Requires some trading experience, not suitable for absolute beginners.
- MT4 is not the best software for graphical constructions.
- You can not immediately take and use.

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A few words of introduction to clarify.
Everything that I will give here will be absolutely free. And I hope that from your side there will be no requests for private educations. I do not do it. I have enough of my trade and those small pips that I receive every day. As you know, I don’t need to prove anything to anyone. Ask everything you want to know here, let it be useful for other participants in the thread.

I will not give screenshots of my account or statistics of my trade to convince you (this is my business and my private territory). If you are competent, you will understand the essence and potential of the method without this. You will need only examples of charts and deals. You will find them in my profile. I will also post charts with examples of FCP here.

I also have the right not to disclose absolutely everything to you, I owe nothing to anyone other than thanking those people who helped me and from whom I studied at one time. Consider me returning my moral duty.

You may ask why I give you for free what brings me money... First, the money is brought not by the system itself, but by experience and knowledge. Secondly, it is not completely free. You will pay for it with your diligence, discipline and hours of training in front of your monitor. He, who is ready to make an effort, will receive the result. At its core, the FCP system is simple, but it is impossible to explain it right away (I think it’s even harmful), so be patient and you will succeed. I will explain FCP gradually and over time (or maybe very quickly) you will understand everything.

In this thread we discuss only FCP. I think you know how to behave so that everyone is comfortable and the thread is useful for its participants.
I hope this thread will become a place of communication for fans of this system.

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The FCP system is based on a graphic display of the psychology of market participants, expressed in the interaction of prices with TL and Fibonacci levels. At the heart of FCP is the idea that the price, breaking out of a diagonal/horizontal channel or triangle, travels a distance equal to the projection of the FIBO levels on the channel width. We will start with the FIBO projection from the diagonal channel, built from the trend line, since this is the basis. In the FCP, for TL we will use the Sperandeo method (Trader Vic).

On the example of uptrend.
Find the last Highest Low (or bottom preceding the last maximum peak). Draw a beam from this point to the left. The first bottom that touches line the will be the second point. You got our trend line. Build the channel so that one of the sides coincides with the TL. Usually we get point 3 by placing a max (min) swing on the midline of the channel, but the best place for the point 3 would be a straight continuous movement as far as possible from point 1 or point 2. Measure the vertical width of the channel and build a FIBO grid equal to this width. When the price leaves the channel, place the FIBO grid so that the line 1.000 passes through the breakdown point of the TL. Lines 0.382 and 0.000 will correspond to our TP. Look for an entry after closing the signal candle at 1.000. SL is usually a few points above the level of 1.000 or extension 1.272.

My daily trading consists more of scalping on m5 or m1. However, I do not recommend starting with a timeframe below 1 hour until you have mastered the system well enough.

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Posts, with explanations of FCP:
, 14-15, 19, 23, 43, 119, 158, 173, 175, 205, 269, 294, 415, 657, 761,

1. Also read the Inthebox post, post
2. Settings FCP in MT4 post, post, post, post
3. Settings MA post, MACD-Indi post
4. FCP when price becomes ranging post

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awesome !

I hope this answers your questions (not all yet )

haha, yes, I was searching hard where those Fibs retracements levels came from

But those TL are part of my daily trading now, thank you again for answering my questions

FCP example. GBP/USD m5.
This is happening right now.

could you please explain how you choose the other side of the channel, why not on the extremes mark with arrows ?
thank you

or the High between the two anchor points, which would be the 'classic' way of drawing channels.

Pay attention to this High. I placed it on the midline of the channel. This combination is of primary importance in the construction of the channel. In this case, we see a weak channel, from which we should not expect good projection, plus the Lon&NY sessions are already closed. Nevertheless, TP1 reached +35 points.

here is a similar example:

yes I noticed it, gotcha. thank you

Later I will show what other important points we should consider when building a channel.
And another example (I have tons of them , I always take a screenshot of my deals):

Hello ! Pretty interesting thread , made me remenber of Andrew Pitchfork , it graphically would be the same of using it with the fib levels on the channel it makes? the specification for the pivot points used on the AP would be the same of that of the fibo channel?

Great thread, Sei!
Thanks!

I did not study the AP in detail, but it seems to me that this is not so...
But, you can try to build FIBO projections from a channel built using the AP.
Maybe it will work, I do not know ...

Fresh example of FСP.
I closed this scalp just with +30p. A good example of another rule for building a channel. If the price goes up (down) from point 1 or 2 with a single impulse and does not roll back, we place point 3 (the second side of the channel) at the place where it stops.

A few more examples of the rule from my previous post about building a channel.

amazing. following with great interest. thanks for sharing.

Im confused about how you form the channels.

Could you do a step by step rule set on how to setup the channels?

tnx in advance.

A very interesting method. Sometimes I really don't understand building a channel ..I would like to ask you why you don't have point three as I marked?
Thank you. And continue your work...

The construction of the FCP channel is largely subjective. There is no clear algorithm. And I like it, there is an element of creativity. There are a few of simple rules. In fact, it is not difficult, you just need experience. You need to practice a little and you will see the channel only after seeing the chart.
1) Place the last High (for the uptrend) or Low (for the downtrend) on the midline of the channel. In this case, the second side of the channel will be built automatically. It will not necessarily be the closest to TL High or Low.
2) If the price rises (falls) from point 1 or 2 (TL construction points) with one impulse and does not roll back, we place point 3 (the second side of the channel) at the place where the price starts to roll back. Examples of this in my previous post.
3) If there is no combination of High or Low with the middle line, and also no strong continuous movement from points 1 and 2, in this case, draw the second side of the channel through the point at which the price starts to roll back after rising (or dropping during downtrend) from the point 2.
4) Ideal channel: A strong impulse from point 1 or 2 gives point 3, while the swing top is on a connecting line. Such an installation is rare, but it gives a good projection when the price exits the channel.
5) When you built the channel, check it: the price swings inside the channel should be combined with the internal lines of the channel (25%, 50% and 75%).
Try to carefully read what I write and carefully analyze the charts with examples, and of course you need to train. Part of my work day is testing. I'm just doing many back-tests of the FCP.
You are right, after an impulse I always draw a line through the point of its end. I wrote about this above. Otherwise, the projection may not be accurate.

LOL YOUR ANSWER WAS IN A DIFFERENT LANGUAGE NOW IT IS ENGLISH. WEIRD.
TNX