My technic with fibo

Hi Friend, My nickname is kenshi22.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

First I have to sorry cause english is not my primary language. So there is must be some word cannot understand.<o></o>

After several years use this technic, I want to share my classic methode with you all.<o></o>

Well this is not new thing for you, but I think you must know about it..<o></o>

My technic is simple 123 with fibo and candle pattern (no indicator).<o></o>

So lets learn about my Methode. <o></o>

1. Find swing high and swing low.<o></o>
2. Draw fibonacci retracement, use swing high and swing low.<o></o>
3. Find Spinning Tops candle at 50% area<o></o>
4. Find confirmation candle after that (BULL or BEAR)<o></o>
5. Make PRICE PROJECTION with fibonacci expansion. Use Swing High and Swing Low. First PRICE PROJECTION in FE 100 and Second PRICE PROJECTION in FE 161.8<o></o>
6. Take action After confirm candle (BUY or SELL)<o></o>

Just that it.<o></o>

3 thing you must remember as your rule to trade.<o></o>

1. Don’t trade if not find reversal candle.<o></o>
2. Open 2 trade with same SL and different TP.<o></o>
3. If one position hit first TP then move SL the other one to BEP +or- 10 pips (depends the action …BUY or SELL) if BUY move SL to BEP+10, if SELL move SELL to BEP-10. and wait till TP2 is HIT.<o></o>

I can use this trade methode with any time frame and any trend (sideway or strongtrend). Bigger TF Bigger TP Bigger Risk. Smaller TF smaller TP smaller Risk. <o></o>

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For example you can see it in picture below.<o></o>

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Ok that’s all friend. Thanks for your attention.<o></o>

this when i trade last night

kenshi, what do you trade most often - the 1hr or 4hr chart?

just like i said before, that i can use this technic with any TF. if i found reversal candle in 50% retracement, i will trade. If not i don't trade. i often use H1 and H4, but sometime in M15.

This one when get a big fish last month

I remember i was in this trade , but i exit too Early !

Nice Thread

what i have said before, that i always made 2 open position with same SL and different TP. So after TP no1 was hitting, i'll wait for the second TP. So i'm not exit to early.

Cool

hello kenshi,


Which is the best Book you have come across so far that explains clearly how you use the fibonacci indicator.


regards,


volvo

Japanese Candlestick Charting Techniques, from Steve Nison

Kenshi,


Given that you have such a powerful strategy why dont you give some more examples which clearly detail how you trade. It is a little difficult to fully understand your technique on the basis of what has already been posted.


regards,


volvo

Is that an ebook

What about money management?

What are your stop losses set at when you enter a trade (how do you determine them)?

Do you use a trailing stop?

What if the market reverses on you? Forexample, you see a bullish candle stick appear, and then it swings bearish again.

How do you confirm that the market is on its way to an extension?

thanks.

volvo264... you can see, how i trade with this technic in pic below.
tomhen...yes this is an ebook.
vder...my money management is only use 2.5% from my total equity.
i dont use trailing stop. But i always made 2 open position with same SL and different target. When No.1 posisiton hit target 1, i'll move SL no.2 position to BEP+/1pips, depends the action buy or sell. So i'll not exit too early and lose pips if they reverses on me.
I use swing high and low for stop loss depends the action buy or sell.
Like i say, i use simple 123 to confirm market direction.
u must practice a lot to define where is right candle and wrong candle. Just do it, dont think. practice can minimize false action.

http://img240.imageshack.us/img240/4...pture24il5.png

http://img457.imageshack.us/img457/916/capture29wt5.png

http://img457.imageshack.us/img457/1...pture27ll3.png

thanks for the reply! I would like to know how do you know which way the direction is heading. I mean, you can be plotting a fib extension for an uptrend in a major downtrend which might not reach its extension. the swing high and swing low you choose might be part of a bigger swing going in the opposite direction.

With you SL above/below the latest swing high/low, approximately how much on average are you risking?

soory i cant answer it in english...my english is so bad... i'm confuse to explaine it...

BUT you can see my jurnal trade in HERE
maybe you can't understand the languange, but you can see the picture how i trade with fibo and candlestick...

i got 864 pips last month with this

Thank You for Sharing, I love Price action and Candlesticks. I look forward to more info and updates.

Also, Do u only trade at 50% retracement on fibo. If Candle patterns say SELL but you are not at any major fib level do u stay out of trade.

Thanks in advance, PIPBird

Could you post the Fibo indicator u use with setting please

First of all thanks a lot for sharing.

I have a few questions though about your graphing strategy with fibo levels Here them are:
- i cannot see in any of the graph which is the fibo first move and which is the retracement, knowing that AFTER the retracement follows the extension in the direction of the MAIN move.
From your pics i can only deduct ( by the way the extension is heading) which is the first move on which all the later calculations are based.

Yes, i know, that in order to picture the whole movement will make the entry point even smaller in the pic, but you can always try to post the general, bigger picture first and next to it the smaller one with the entrance and explaining arrows you got there.

Then in the picture posten on your personal site forum, surprise surprise, entry point is not at 50% but at next fibo, 76,8% How do you explain that entry? If you would entry as usual at 50 in that pic u would probably hit SL order.

Thanks, Cristian

@PIPBird and 3cent
50% is ideal setup for 123 strategy, but you must know that there is three golden ratio number here, 38.2 - 50 - 61.8. When price fail to break and close at above or under one of golden ratio number then this may be our signal. for understand the right move for 123 setup is you must see D1 chart first. if in D1 is UPtrend then we will find BUY signal at smaller TF (H4 - H1 or M15 ) and vice versa. to use fibonacci you must practice a lot to find the right point of swing high and low. i have 1,5 years practice to find the right point. and i still get wrong point. But more practice can reduce or minimize our fault.

@3cent
well sometime price not follow the rule. that because forex is dinamic. Sometime i lose 300pips, but with my money management, 300pips is nothing, cause i can cover it with 20pips win.

@dswk
you can use fibo indikator in MT4 platform. i use standart tool, and draw it manual, never change it.

for all...thanks for the question...i hope i can explain it with clear