The Fibonacci channel projections (FCP)

Hello, friends. I hope all of you are well.
As I noticed, many have difficulty in defining the 3rd point in the examples, that we analyzed and they looked "not according to the rules." Let’s clarify this question. There is nothing complicated about it. Consider the example of the uptrend. When you built the channel, look at the left side of the chart behind the outside of the channel. What did the price do before it hit the channel? Did she fall or go up in the direction of your channel (trend)? If the swings rise up, you can expand the channel so that one of the top appears on the midline. And that’s all. You may ask - we get a wider projection, will it work? The answer is yes, if you get confirmation at the price of Fibo levels before the breakdown of the channel and confirmation at the price of Trigger levels 1 and 2 (especially 2). In addition, when choosing the channel width, consider that you are building a projection on the trend, or on its correction (see htf). I picked up a few examples so that you understand how it looks.






By the way, someone said about throwing a coin. This is a very good example. I wrote earlier that my approach to trading is similar to the principle of a casino. This is not the same as throwing a coin. At the casino there is an advantage (I'm talking about roulette) - this is zero. So the odds are 49/50, or so. But this 1% gives the casino billions of dollars. The question is the number of deals. Build your advantage on your system and use it. I am sure that we all have it and it is much more than 1%. It remains to do the same thing. There will always be those who did not bother to study and try, and those who did. The difference between them becomes visible only with time. The first will simply disappear, and you will live. The FCP system itself does not give you a big advantage, it’s just a template, fill it with what you better own, and it will work like a good watch.
Good luck friends.

so i take it that both h1 and m15 is used for trade entry. remember to look at h4 for trend.
this means
h4 is rising --> h1 is falling (retracement) --> m15 expecting soon to be rising as per h4 trend.
it will be dependent on your expectation of profit.
if entry per h1, then it is h1 target (larger) --> look only at h1.
if entry per m15, then it is m15 target (smaller) --> look only at m15.
or if entry per m15, but h1 target --> look only at h1, because your fib is based on h1 channel.

gj result

Thanks! This clarifies a lot.

Update on today's trade on EUR/JPY. Exited 10-15 pips below daily highs, was expecting it to go to the pivot and TP2 but saw strong rejection and thanks to IntheBox was watching out for previous days highs. In general great trade I enter little early as my rules for my other system were there, total 52 pips on this trade.
I see the most trades with this system are great for TP1 as Seysin sad safe point.

I had a problem drawing point 3,benefited greatly from this, thanks.

concerning finding point 3 of the channel:

post 133 on finding a better point 3 for a channel built from point 1 or point 2.
post 414 on finding a better point 3 for a channel width
post 761 on finding a better point 3 for a channel in the context of surrounding candles before entering the channel.

depending on the currency pair, be realistic and flexible about targets.
for example, gbpjpy (the beast).
asia session - channel width about 20-30 pips without news.
london/new york session - channel width double or triple that of asia session.

gj

TP2 reached.

Hi All.
In night I create two channel on EU with diffrent width of channel. TP was reached. Its build both correctly? Thank you for answer.
I wish everyone a successful week.

i would like to tell the rest that if you miss an original trade opportunity,
this is a good example of waiting for lower high lower low in smaller time frame.
the question as always is whether we have the patience to wait for it.

Thank you, as always, your advice is valuable.

gj result

both ok.
i prefer the 1st m15 chart with smaller channel width due to candles responded to the channel inside lines and eu target of 40 odd pips.

ga

ga result

EN

do you find that your trading has improved over these past 2 weeks?
or is it due to your past experience?

I think it's improved. I have been trading for 2 years. I have a Micro account. I always preferred indicators and little I painted in the graph. It was a mistake. It's very important and I see how it helps me. And I'm learning patience in opening stores. And also money management. This was critical for me in the past, I let the trades run at a loss, instead of closing them and finding a better entry. A long way to go ....

@Inthebox,would the demark trendline indicator be helpful for drawing points 1 and 2? cheers ...