Disliked{quote} Hey - On your Fibonacci Tool Settings add these inputs: Fib Levels - 0% - 100% - 50% - 62% - 70% - 79% - (-24%) - (-62%)Ignored
I have some questions asking about why zoom in on the chart. I will try to explain that here. Also, why use 8 Pips? You can use 4, 6, 8, 10, whatever. You can experiment with any amount. I just recommend doing some testing yourself. As you go to higher time frame charts you should expand the pip entry range for a buy or sell stop order. There are many ways to enter a trade. I have some other suggestions but for simplicity we'll stick with a fixed number for no and focus on alternative options later.
Let's look at a 30 Min Eur/Usd chart. And we can zoom in on a 15 min and 5 Min.
30 Min Eur/Usd: I know that I want the price to at least touch the 50%. Then it can fall anywhere in the range between 50% and 79%. But with this setup I want to get a more accurate focused view on where the high and low occurs. Then I can put more buy stop order to a set number of pips above the low that occurs in that range. So the only purpose is for perspective and measuring where to place a potential order.
15 Min 8 Pips
15 Min 10 Pips
So as the low continues to set itself on this chart...unless there is at least an 8 pip bounce or 10 pip bounce the order will not fill. so you would continue to measure the buy stop down as the low gets lower in the range.
5 Minute Zoom
Let's look at a 30 Min Eur/Usd chart. And we can zoom in on a 15 min and 5 Min.
30 Min Eur/Usd: I know that I want the price to at least touch the 50%. Then it can fall anywhere in the range between 50% and 79%. But with this setup I want to get a more accurate focused view on where the high and low occurs. Then I can put more buy stop order to a set number of pips above the low that occurs in that range. So the only purpose is for perspective and measuring where to place a potential order.
15 Min 8 Pips
15 Min 10 Pips
So as the low continues to set itself on this chart...unless there is at least an 8 pip bounce or 10 pip bounce the order will not fill. so you would continue to measure the buy stop down as the low gets lower in the range.
5 Minute Zoom
Yeah, that's discretionary, right?
If the market makes new highs without pulling back at least 50%, you will continually keep drawing point 2 to whatever the highest high that it keeps producing. If it never pulls back 50%, then there is no setup.
For example:
Same Chart Pulling To A New High
{quote} ...setup the Fib Draw is THE LOW BEFORE THE SIGNAL / COLOR CHANGE. To Point 2, as you reference, which is THE HIGHEST HIGH PRIOR TO A PULLBACK... {image}
Seems like a good strategy and thanks for good explanations!
I have couple of questions if you don't mind...
1.How you define number of pips for stop entry?
2.Do you care about high impact(RED) news announcements?
3.
{quote} Fibs for about 8 years. This specific strategy I built with concepts I've learned over the course of 10+ years. This is a simplified version of how I trade. But these setups are consistent.
SMKNYC---LIAR
