To understand better I have re-created the fib and chart on my software - slightly different candles but I guess that is down to time zone. I use charts from North Finance which are +2hr GMT. Do you only use 1 Hr USDCHF?
Please could you explain a little more? I am relatively new to Forex and not experienced enough to understand everything from the notes on your chart.
To understand better I have re-created the fib and chart on my software - slightly different candles but I guess that is down to time zone. I use charts from North Finance which are +2hr GMT. Do you only use 1 Hr USDCHF?
Please could you explain a little more? I am relatively new to Forex and not experienced enough to understand everything from the notes on your chart.
Thanks and looking forward to more.
Ignored
Chris, that's right..i use 1Hr USDCHF chart. I first plot the Fibo. Ret. levels on the swing low and swing high point (not sure North Finance will give you an inverted fib??) but anyway The retracement levels will be formed as seen in the pic. Place buy limit order 1% of your Net Asset Value(NAV) on every levels with a Take Profit(TP) from (top to bottom) 10pips, 15pips, 20pips, 25pips and the lowest swing point leave it without TP....because this level i will use trailing stop instead. So when the limit buy order get filled at this point/lowest level as the market pulls back, i will place stop loss(SL) at breakeven and then keep moving the SL upward trailing the current price until the position stop out.
On the other hand, i also stack my chips (1% NAV limit buy order) on every 5pips distance with TP of 5pips each all the way down to the current/market price minus 15 pips (billbss mentioned is a grid sys). Example if current price is 1.1850, i will stack my chips upward above 1.1865 (1.1865 - 0.0015 = 1.1850)...after that just sit tight and wait....keep repeating this scenario on and on till you say it is enough...so far my record has been good.http://www.forexfactory.com/images/icons/icon10.gifhttp://www.forexfactory.com/images/icons/icon10.gif
I have tried over 7 other systems which require me to glue to the screen all day and waiting for setup...some of them are greate and i'm still practicing it....but this one really hassle free and i enjoy it... http://www.forexfactory.com/images/icons/icon14.gifhttp://www.forexfactory.com/images/icons/icon7.gif
Chris, that's right..i use 1Hr USDCHF chart. I first plot the Fibo. Ret. levels on the swing low and swing high point (not sure North Finance will give you an inverted fib??) but anyway The retracement levels will be formed as seen in the pic. Place buy limit order 1% of your Net Asset Value(NAV) on every levels with a Take Profit(TP) from (top to bottom) 10pips, 15pips, 20pips, 25pips and the lowest swing point leave it without TP....because this level i will use trailing stop instead. So when the limit buy order get filled at this point/lowest level as the market pulls back, i will place stop loss(SL) at breakeven and then keep moving the SL upward trailing the current price until the position stop out.
On the other hand, i also stack my chips (1% NAV limit buy order) on every 5pips distance with TP of 5pips each all the way down to the current/market price minus 15 pips (billbss mentioned is a grid sys). Example if current price is 1.1850, i will stack my chips upward above 1.1865 (1.1865 - 0.0015 = 1.1850)...after that just sit tight and wait....keep repeating this scenario on and on till you say it is enough...so far my record has been good.http://www.forexfactory.com/images/icons/icon10.gifhttp://www.forexfactory.com/images/icons/icon10.gif
I have tried over 7 other systems which require me to glue to the screen all day and waiting for setup...some of them are greate and i'm still practicing it....but this one really hassle free and i enjoy it... http://www.forexfactory.com/images/icons/icon14.gifhttp://www.forexfactory.com/images/icons/icon7.gif
Ignored
Fx4live
Thank you very much. I like simpler methods like yours. Please give more details e.g
1. When do you generally draw your levels
2. When do you generally cancel them if ever?
3. Do you stil have floating trades at this point?
I understand we are buying the price retracement at each Fib level on its way back up. But when exactly do you put the buy limits into the market? For example the current price on your chart (around 1.1806) looked as though it was on the way down and would hit the 23.6 Fib level - as indeed it did. If you put Buy Limits at the 38.2 and 23.6 Fib levels into the market at that point and they get triggered surely you are incurring a great liability as the price continues to go south? Or do you wait for the price to start going north again before entering anything?
Sorry to be so dense. But I'm not that experienced. I think the idea is brilliant - just not quite sure what it is! If that makes any sense?
Please FX4live can you, or anyone who knows, spell the whole process out a little more? Thanks.
aelimian, to answer your questions :-
1) on every Tuesday
2) Yes, if price went up above the Fib level, i re-draw the Fib. and re-position the pending orders.
3) Yes, i have, even if i close out all of them, i'm still in profit but i decide to stay on with them to collect interest...until one fine day the condition doesn't allow me to hold further (e.g a BIG unwind), i will decide to off load them above my profit level (e.g if your starting BAL is USD500, once you ballon to USD1000, make sure you SL above USD500 mark to protect your initial capital)
Chris,
There is no special/specific rules to follow over here, its all on your own discretion how your manage it using MM, design and fine tune the system to suit your style...i normally let those pending orders set on Fib level to be triggered irrespective which direction..you can have it trigger when price rebound or vice-versa, your choice. I'm just too lazy to figure this out, all i do is just plot the fib. and stack my chips on each levels, that it, done. Maybe you can have a good suggestion here, i will be more willing to hear. If the price does go sourth, all you got to do is hold on with your open position wait till the price retrace and re-plot your fib and re-place your pending orders. On the other hand, the grid system, only place your pending order on top above 15 pips of market price, if the price does go sourth you don;t get filled any of them, remenber don't place them below the current price but above the price, if a big unwind you won't get thrashed out unless is a slippage during news time. In this case don't trade during news time. Every trade has to be small (1% NAV or less), don't overtrade...i'm still figuring my SL level to protect my capital & profit in total. At the moment is just like what i have explained to aelimian in item 3.....Anyway, please demo-trade first, until you are death sure on real money....
1. what time do you set the 5 pip limit buy orders every day?
2. I see you post profit nearly every day of the week, how is this possible when not every day is a bullish day (your buy orders aren't getting executed every day)?
3. what happens if one of the 5 pip (buy limit) trades gets triggered but doesnt TP? when would you consider closing out the trade? you can't tell me that placing buy orders every 5 pips that every one that gets triggered TP EVERY time?!
If you can answer those questions it would be greatly appreciated.
1. what time do you set the 5 pip limit buy orders every day?
2. I see you post profit nearly every day of the week, how is this possible when not every day is a bullish day (your buy orders aren't getting executed every day)?
3. what happens if one of the 5 pip (buy limit) trades gets triggered but doesnt TP? when would you consider closing out the trade? you can't tell me that placing buy orders every 5 pips that every one that gets triggered TP EVERY time?!
If you can answer those questions it would be greatly appreciated.
Ignored
1. anytime except SAT & SUN...so long as 15 pips above current price..
2. you are right not every day is "SUNDAY"...take a closer look at smaller timeframe like 5min, 15min or 30 min, you will see how price bounces and how this make possible for me..those TP trades will get refill, same rule apply so long as 15 pips distance
3. keep those trades and earn interest if you want...there may be a scenario that you get trailing stop for trade that triggered on fib level as well...every day you get pips, i'm sure after sometime pips that you collected will big enough to cover your open positions. you can then choose to close out all positions and still with good profit or wait till mkt retrace to take out those positions. It is all of your own discretion.
FYI, my 12/10/2007 up 160pipshttp://www.forexfactory.com/images/icons/icon10.gif
Hi FX4Live,
I can not place any limit buy order stack on top of current price. The limit buy order only place below current price.?
For place buy orders above current price, all have to be buy stop orders.
You said you draw your FIB Levels every Tuesday, so that means my Hi/Lo should be from Monday's session? Also, do I draw from top to bottom or bottom to top [it does make a difference where the retracement values will be]? I know FIBs are drawn based upon whether the Lo or Hi came first, and that will dictate whether my FIBs are drawn from bottom up or from top bottom.
Yes, right from the Monday's session Lo/Hi. Looks strange here...my Oanda's fib has a inverted of your fib chart. In that case your second chart is the correct one to plot......hope this help http://www.forexfactory.com/images/icons/icon7.gif
Yes, right from the Monday's session Lo/Hi. Looks strange here...my Oanda's fib has a inverted of your fib chart. In that case your second chart is the correct one to plot......hope this help http://www.forexfactory.com/images/icons/icon7.gif
Ignored
I guess I confused you. In plotting FIBs, if the candles for a day starts from LO to HIGH then we should plot from BOTTOM to TOP, and if the day starts with HIGH to LO then we should plot from TOP to BOTTOM. Am I correct? Its just that I see in some threads where some say it makes no difference, but I think it does....
I guess I confused you. In plotting FIBs, if the candles for a day starts from LO to HIGH then we should plot from BOTTOM to TOP, and if the day starts with HIGH to LO then we should plot from TOP to BOTTOM. Am I correct? Its just that I see in some threads where some say it makes no difference, but I think it does....
Ignored
You are right, there is difference plotting fib from BTTM to TOP and from TOP to BTTM. coz, this determine the retracement levels. In my case here, i only plot 1 directive irrespective whether the candles start from LO to HIGH or HIGH to LO, your second chart is always the one that i plot irregardless which direction the market goes.
P/S phonehome - in fact not neccessary to follow so strictly to plot fib on every Tuesday, you can get previous week HIGH/LO to plot it. It is all individual flavour, no strict rules.
seeing in your charts ur running up and down the stream ... quite perfect in ranging markets. But what are you doing if the pair is running out of sight, today hundred, tomorrow fifty, this week threehundred pips and further? i.e. EURAUD. The only safety is waiting for the earned interest to compensate ... anyhow this could take years with lots of negative pips in your pocket. So - how do you manage this or did I get you wrong?
