Simple Fibonacci Trading

Hello Hugh,

Thanks for sharing your system. Very Simple and looks effective.
There was a UJ set up in 5m, but I missed it.

Thanks,
Arun

Don't worry, I miss loads of decent setups! Thanks for posting that one. I'll catch one soon.

But,
1) PA fighting Daily pivot.
2) 100 SMA rule not satisfied.

Yep, not a clear set up, a good one to avoid.

Fortunately my TP his for +34pips = 17*2

Next time I ll control myself to avoid such entries...

Closed both trades, not waiting till 38.2 extention since its not valid entry.

Arun

Hugh,

How do you define a valid setup ? The SMA100 you are looking at is used at the time you apply the Fibo or at the time the price retraced to 50% ?

Most of the times the SMA is "flatening" when the price retraced to 50%.

It would be great if you could show on charts both valid and not valid setups and mark at what time the setup/signal became not valid.

Thank you.

Usually the push away from a sloping 100 sma will pull the sma higher with it. The 50% retrace will drop back towards the 100 sma. In general you want the 100 sma to not be breached by the pullback, it should bounce before it gets there. It depends on the original slope of the sma. Here are some charts of valid set ups. The slope of the sma only needs to be gentle to start with as long as price is pushing away from the ma then you have a valid trade.

Thanks for this. But could you please show me an example of non valid setup.

Thanks.

That's a bit trickier to do! A non valid setup is anything that doesn't look like the above... I know that probably doesn't help much but it's the best I can come up with. I know what to look for but it's hard to tell you what I'm not looking for if you know what I mean.

Hi Hugh,

I've been looking at Fibo trading for a month or so now and was intrigued by the simplicity and mechanical aspect of your system.
To help with identifying points to apply the Fibos I use swing high and swing low identifiers. What I am looking for is a significant distance between the two to eradicate the noise inbetween. Also I use daily Pivot points to help with support and resistance confluences.
I will be trying your methodology over the next couple of weeks and will let you know how I get on.

Raggs

Ok that's fine. Thanks again for your hard work on this thread.

Short at 85.68

The price on your pic didn't retraced to 50% ... or am I wrong ?

Hello Ferru,

Step 4 - Wait for the price to touch the 50% retracement level. It can breach the level completely or just touch it gently but it must at least touch.

Which means I m wrong.

I ll take care next time.

Thanks.

Arun

Hi Hugh,

Is this a valid entry?

Thanks,
Arun

Looks ok. Could be a cleaner pullback.

EU H4 trade taken with the help of the fibonaci trade manager. So far so good it is a waiting game from now on. The trade was planed yesterday and nicely executed this morning while I was at work.

Good stuff

Hi Hugh...as i see you are just trying to improve or re-alive Bobokus Fibonacci usage..I have used that method for a very long time with really profitable results.But i think u shud share Bobokus' ebook with the thread followers to make them understand the mentality better...It is one of the money-making methods on the forex market...but it has weak sides too !!

- Bobokus accepted %50 as a decision zone where bulls and bears will fight...and we will be following the winner in the basic mentality . But İt does not give max profit in every pair and every timeframe...especially JPY pairs do not respect %50..they mostly retrace back to %78...

As i remember Bobokus just used this method in GBPUSD H1 timeframe , and GBPUSD is really one of the pairs which mostly respects the fibo ratios...So we shud accept that there are some details about this method and it performs good on specific pairs and timeframes...

I used this method with martingale...I mean It made me feel secure enoughh to try even martingale...and the result was good , but i had to use many filters in order to filter wrong signals...You know It can be ur end if the price whipshaws on the center of FİBO when u are aplying martingale....And the best filter was to expect a pinbar or an enfulging bar at the denger zone 38-50-61...it really made the method stronger on different pairs and timeframes...

I will not talk much...and HUGH i really appriciate you that you use this method which is one of the most effective weapons in forex market.And I think it will be easier for the beginnings if u upload BOBOKUS' ebook in ur first post...it is simple enough to make anyone understand..By this way you will not be asked many questions

But plz try filtering the signals with pinbar or enfulging bars (on lower timeframes like M5)...you will be amazed with the results...

Thanks Hugh, the title says it all: simple...not always accurate or perfect!!! Seems predominantly safe(oxymoron with forex)) and congruent with all other systems. Will definitively try. Never opposed to new ideas, information or knowledge. Thank you!!

Nice thread Hugh. I use a fib indicator & an S/R indicator as well. I usually trade on the M1 or M5, scalping as the market moves towards Fibs, S/R or Psych levels. Here is a picture of the GBP. Looks like the 38.2 is holding its own. Its also a pivot level on my chart.

Dan