I feel what your saying on the drawing issue.
I felt the same way for a long time when I traded equities.
However, after back testing, I noticed it is not as subjective as drawing high and low fib's and has more value then normal fib drawing IMO!
The reason being it is static and proves dynamic growth?
I risk 0.2% a trade, and usually place on avg. about 3-5 trades during a 5-8hour session.
If there is confluence I will trade up to 1% per trade on those 3-5 trades.
The confluence usually happens in a cycle.
The first day of the week.
The first day of the month.
odd? eh? back test you will see...
Sunday-Monday are my favorite days, if I only traded those day I would be 95% accurate. Fridays usually are shitty. 40-60% accurate. This is based on my sample size which is 80% of the 240 trading days * 3-5 trades a day * 7years of trading... still very small...
The market follows a calendar because traders are real people and have daily(0.2-3%),weekly(1-5%), and monthly(10-20%) goals...
I am referring to traders that are alive after 12months of trading, and trading at least 60% of the 240 trading day a year...IMO!
These are a few reasons I draw fib's based on the crowd psychology behavior. I found using time instead of subjective highs and lows. I feel to many traders will pick different highs and lows where bank traders follow large grids and cycles and do this using PRICE and TIME.
What do you think?
I felt the same way for a long time when I traded equities.
However, after back testing, I noticed it is not as subjective as drawing high and low fib's and has more value then normal fib drawing IMO!
The reason being it is static and proves dynamic growth?
I risk 0.2% a trade, and usually place on avg. about 3-5 trades during a 5-8hour session.
If there is confluence I will trade up to 1% per trade on those 3-5 trades.
The confluence usually happens in a cycle.
The first day of the week.
The first day of the month.
odd? eh? back test you will see...
Sunday-Monday are my favorite days, if I only traded those day I would be 95% accurate. Fridays usually are shitty. 40-60% accurate. This is based on my sample size which is 80% of the 240 trading days * 3-5 trades a day * 7years of trading... still very small...
The market follows a calendar because traders are real people and have daily(0.2-3%),weekly(1-5%), and monthly(10-20%) goals...
I am referring to traders that are alive after 12months of trading, and trading at least 60% of the 240 trading day a year...IMO!
These are a few reasons I draw fib's based on the crowd psychology behavior. I found using time instead of subjective highs and lows. I feel to many traders will pick different highs and lows where bank traders follow large grids and cycles and do this using PRICE and TIME.
What do you think?