Disliked{quote} I use the fib tool for market order entries on pullbacks/retracements, and for placement of limit orders. The levels that are of interest to me are 15%, 38.2%, 50%, 61.8%, and 74.6%. I have found that 15%, 38.2%, and 50% are more common on minor pullbacks. If I am placing limit orders, I will usually place one near 38.2%, one between 50% and 61.8%, and one near 74.6%. I may delete these pending limit orders. It all depends on market conditions. As for market order entries, I wait to see how price reacts to these levels. If I see an opportunity...Ignored
- Joined Dec 2019 | Status: still here | 5,415 Posts
{quote} Trying to get trader lingo down. SH = Swing High, SL = Swing Low
It depends on the context. If it is an ultra high volume candle, then I will attach the fib tool to the candle's range (the high price to the low price of the candle). Don't confuse the open and close prices of the candle with the high and low prices of the candle. They are not the same.
That being said, if the candle is bearish, then the levels will be drawn from the high to the low of the candle. If it is bullish, then it will be drawn from the low to the high of the candle.
Otherwise, I will use swing highs and swing lows as a guide for drawing my levels.
Note: you can use Bill William's Fractals indicator to easily locate valid swing highs and swing lows. You can also use the ZigZag indicator. Setting the ZigZag indicator to 5,5,3 is helpful. However, I prefer William's Fractals, because I have other strategies I use for them.
See images.
High Volume Candle
Swing High to Swing Low
Learn from your mistakes and march on.
- | Joined May 2021 | Status: Member | 112 Posts
{quote} Got it.
- Joined Dec 2019 | Status: still here | 5,415 Posts
...EURUSD is turning bearish and could go down further...
EURUSD 8HR Chart
Learn from your mistakes and march on.
- Joined Apr 2021 | Status: The Special One. | 4,865 Posts
Same here, closed all my EURUSD positions. It was a good ride since 1.176 but every good thing has an end i guess 
I don't want to sound like a fortune teller but in given situation and circumstances, i don't really think USD will be able to take it's value back in the rest of the 2021. Euro's chances are higher against USD. That's just a guess though. Everything can change in this dynamic, fast-paced world. These are just the scenarios in my mind.
Another scenario is though, FED may raise interest rates even though they said they won't in previous months. Because inflation is getting hotter quickly. Core inflation is sitting at 3.8% right now, almost 2 times bigger than the FED wants. I don't really think they will yet, because they still haven't got the NFP and other employment numbers they wanted. Also we have another 6 months until 2022. They may give it some time before raising the rates, like they said last month.
So i have some plans and scenarios in my mind, but i am not willing to take more risks. I only trade when i see a clear opportunity. There's so much "if's" for me now. I am looking forward to see the next week's Euro Area Inflation and FED Rate Decision. Maybe this can clear some thoughts and i can pick another trade. I won't be trading EU until that. I wish you guys the greenest pips!
I don't want to sound like a fortune teller but in given situation and circumstances, i don't really think USD will be able to take it's value back in the rest of the 2021. Euro's chances are higher against USD. That's just a guess though. Everything can change in this dynamic, fast-paced world. These are just the scenarios in my mind.Another scenario is though, FED may raise interest rates even though they said they won't in previous months. Because inflation is getting hotter quickly. Core inflation is sitting at 3.8% right now, almost 2 times bigger than the FED wants. I don't really think they will yet, because they still haven't got the NFP and other employment numbers they wanted. Also we have another 6 months until 2022. They may give it some time before raising the rates, like they said last month.
So i have some plans and scenarios in my mind, but i am not willing to take more risks. I only trade when i see a clear opportunity. There's so much "if's" for me now. I am looking forward to see the next week's Euro Area Inflation and FED Rate Decision. Maybe this can clear some thoughts and i can pick another trade. I won't be trading EU until that. I wish you guys the greenest pips!
I make my own luck.
- Joined Dec 2019 | Status: still here | 5,415 Posts
Same here, closed all my EURUSD positions. It was a good ride since 1.176 but every good thing has an end i guess
Learn from your mistakes and march on.
- Joined Apr 2021 | Status: The Special One. | 4,865 Posts
{quote} I agree with everything you said except the part about every good thing having an end. But you did say, "I guess." So that at least means you are open to the possibility of being wrong. That, of course, is a good thing.
I can only guess about the future, there's no guarantee that i will be right. We trade possibilities, and everything is possible I make my own luck.
- Joined Dec 2019 | Status: still here | 5,415 Posts
Don't be fooled!
Don't lose sight of the bigger picture. EURUSD is bullish. Don't be fooled by short term bearish activity.
Notice how price bounced at the 61.8 fib level on the 8HR chart. This is an important area. It is a level that is of great interest to many professional traders. The fact that price bounced so strongly from this level tells me bulls are still in control.
Indeed, there will be strong bearish activity from time to time, like we have seen recently. But if you want to know the real story, then you need to look at the higher timeframes. This can't be stressed enough.
A helpful tool to use is a currency strength meter. I generally focus on Weekly and Daily Strength. The following image clearly shows that USD is weaker than EUR according to Weekly strength. This currency strength meter is free to use, courtesy of Currency Quake.
While I mostly focus on Technical Analysis, I do not disregard fundamentals. Fundamentals are important. The following image shows the sentiment of buyers and sellers. As you will see, it shows more sellers than buyers on EURUSD.
But why is it giving a buy signal when there are more sellers than buyers?
It is a fact that most retail traders lose in this game, that the majority is usually on the wrong side. So if the majority of traders are selling, then it would probably be a good idea to look for buying opportunities. In short, don't follow the herd!
This tool is also provided for free, courtesy of FXSSI.
I'm not saying you should avoid selling on EURUSD entirely. I am only saying don't lose sight of the real story. Ignoring the bigger picture could cause you to lose your money.
So what is my plan? I am sitting on my hands on EURUSD at the moment. In other words, I am neither a buyer nor a seller. I am neutral. I am waiting for a go signal. When I obtain enough information to make a buy or sell decision, then I will act accordingly. Until then, I proceed with caution.
There is no need to rush into a trade. It's better to be patient and wait for opportunity to knock. Good luck.
P.S. If you have found this post helpful and would like to show support for my efforts in freely using my time to help traders on FF, please visit my profile and subscribe. Your support will motivate me to keep sharing. Thanks.
Don't lose sight of the bigger picture. EURUSD is bullish. Don't be fooled by short term bearish activity.
Notice how price bounced at the 61.8 fib level on the 8HR chart. This is an important area. It is a level that is of great interest to many professional traders. The fact that price bounced so strongly from this level tells me bulls are still in control.
Indeed, there will be strong bearish activity from time to time, like we have seen recently. But if you want to know the real story, then you need to look at the higher timeframes. This can't be stressed enough.
A helpful tool to use is a currency strength meter. I generally focus on Weekly and Daily Strength. The following image clearly shows that USD is weaker than EUR according to Weekly strength. This currency strength meter is free to use, courtesy of Currency Quake.
While I mostly focus on Technical Analysis, I do not disregard fundamentals. Fundamentals are important. The following image shows the sentiment of buyers and sellers. As you will see, it shows more sellers than buyers on EURUSD.
But why is it giving a buy signal when there are more sellers than buyers?
It is a fact that most retail traders lose in this game, that the majority is usually on the wrong side. So if the majority of traders are selling, then it would probably be a good idea to look for buying opportunities. In short, don't follow the herd!
This tool is also provided for free, courtesy of FXSSI.
I'm not saying you should avoid selling on EURUSD entirely. I am only saying don't lose sight of the real story. Ignoring the bigger picture could cause you to lose your money.
So what is my plan? I am sitting on my hands on EURUSD at the moment. In other words, I am neither a buyer nor a seller. I am neutral. I am waiting for a go signal. When I obtain enough information to make a buy or sell decision, then I will act accordingly. Until then, I proceed with caution.
There is no need to rush into a trade. It's better to be patient and wait for opportunity to knock. Good luck.
P.S. If you have found this post helpful and would like to show support for my efforts in freely using my time to help traders on FF, please visit my profile and subscribe. Your support will motivate me to keep sharing. Thanks.
Learn from your mistakes and march on.
- Joined Jun 2016 | Status: Sharing EUR/USD Ideas and Insights | 12,589 Posts
EU ranging with a bullish tone. 2200/20 is hard to break, so it may retrace to find more buyers ahead.
Looking for profitable short term trades ...|
