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trade daily retracements?

  • Post #1
  • Quote
  • First Post: Dec 6, 2006 10:51am Dec 6, 2006 10:51am
Is it wise to trade retracements based on the daily charts? I have been trying to do so without much success but sometimes there are huge profits to be made. I am not sure if my technique is sound yet which is probably why I am constantly losing money.

thanks.
Quoting vder
Is it wise to trade retracements based on the daily charts? I have been trying to do so without much success but sometimes there are huge profits to be made. I am not sure if my technique is sound yet which is probably why I am constantly losing money.

thanks.
Retracements happen on all time frames, if you are using fibonacci numbers to calculate then i've read that 4HR and Daily's have the highest correlation with fibs of all the time frames, but cannot attest to the accuracy of that.
To be one with the market, you must first be one with yourself.
I understand what you are saying about retracements, and I'm sure it could be done, but the most important lesson I've learned in Forex is to go with the trend. If I go long and there's a reversal day, oh well, I couldn't have predicted that (second most important lesson). We are just little minnows in a sea of sharks (banks), so all we can hope to do is swim behind 'em and catch some of the momentum. (I'm not good at analogies, if you haven't noticed )

So, I wish you the best trading retracements, but it is my opinion that it is much more profitable and easy to trade with the trend.

andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
Thanks for the replies guys. I have been trying to learn how to trade in retracements and other market conditions. I won't trade retracements on smaller time frames such as 1h or 3m. but the 4hr and daily retracements can be huge! I know there is a way to trade it and I am trying to develop a strategy that employs good money management, just wanted to know if anyone had any pointers that they use.
  • Post #5
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  • Last Post: Dec 7, 2006 8:53pm Dec 7, 2006 8:53pm
Quoting vder
Thanks for the replies guys. I have been trying to learn how to trade in retracements and other market conditions. I won't trade retracements on smaller time frames such as 1h or 3m. but the 4hr and daily retracements can be huge! I know there is a way to trade it and I am trying to develop a strategy that employs good money management, just wanted to know if anyone had any pointers that they use.
The best way to trade retracements in my opinion is fibbonaci as a tool, and as a system/practice, Elliot wave. Elliot wave theory makes heavy use of fibbonaci. Check out fixme1too's thread in the journals fourm, i'm sure it'll be useful in developing a strategy.
To be one with the market, you must first be one with yourself.
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