how to trade vegas fib exhaustions???

"The higher fib numbers really are giving you that important equation: price = information. They are screaming exhaustion. If you do the work in your currency pair, you will see that the market action after hitting these levels almost always involves retracement or the start of a bigger move in the opposite direction. Is this not valuable information?" from The Tunnel Method, by Vegas.

OK, so I know the play is to fade extreme fib levels. I just don't understand HOW you're supposed to know when to get in. I attach 4 charts showing currencies that are CURRENTLY at their exteme fib levels. How do we play Vegas Fib exhaustions?

Another VFE, how do you know when to enter the short?

Another VFE, how do you know when to enter the short?

What indications are there that price has turned?

Firstly entering short is the same as long if you are talking about fib exhaustion plays.

Use price action - see James 16 thread for info on that or grab a basic tutorial on candlesticks, looking particularly for reversal patterns.

there are probably people that can tell you some more but that's the nuts and bolts - proper money management and positon sizing are vital especially when trading daily charts since stops may be wide, this is where James 16 thread and learning price action can assist. Hope that helps a bit.

The first chart could be a pin bar set up, see J16

The short one, you have a bounce of a fib level that wasn't penetrated earlier, with a railway track side by side formation.

You just need to keep studying the price action till you get a feel for it. It's not totally mechanical and I haven't fully mastered it yet either, not even 20 % there.

Hi!
Minute is right, a lot of times on your 1h chart you will find pin bars at the fibos or near them, indicating at least a very short term reverse. This isn't going to help you at all though if the daily bars show a different story.

If you want to play exhaustions, use the daily currency indicator from vegas and from vegas wealth builder 1.
There's a hierarchy in his released documents, and I believe for a reason. The 1h tunnel was the first method, superceded by the 4h tunnel, then followed the daily with the VWB doc. Now I know people are nuts about the shorter timeframes, I haven't managed to shake them yet myself, but I recommend daily/4h over it, if only to stave off overtrading and getting less noise and false signals. Even though vegas now himself plays the fibs for exhaustion, the original intent for the 1h tunnel was the "loaded gun" of price and EMA inside the tunnel. There were two of these lately in cable and fiber and cable ran 150 the other day and euro ran 90 pips today, not from exhaustion but tunnel plays


I recommend the most enlightening thread you will ever read and suggest considering a study of pins and price action in general. Also I'm sure James won't mind if you join the private forum

Attached an example from the daily

Thanks to all who answered. Anyone have any charts with examples? It seems price action is the way to go.