Fibonacci Trading with Bobokus

Hello Bobokus and the rest of you Fibonatics. This is my first post here. What i want to know is at what point does a Fibo chart need to be redrawn. The chart below is the Gbp/Jpy daily . To determine the price action from point C to E do i use the fib levels drawn from A up to B or would i need to draw a new set of levels from B down to C. Also what is the strongest fib level and what is the best time frame to use it.

What I look for on the Daily is the last up or down move that encompasses all the moves after it, in this case it is your B to C.For an Intermediate type fib I would look to draw it from where you have your D to E. From that point I use the 1hour timeframe to trade from with those daily fibs in the background and once switched to the 1 hour pull fibs across the daily highs , lows and swings. I also use a swing fib to use as an immediate price action gauge. But your strongest fib levels will be the ones youve drawn from the daily view.

hey bob i entered in short @ 2.0510 what do you think???
regards,
bksujal

Should be ok unless price can break the blue trendline,A good sign would be candle opening below 2.0501.Just have to be carefull at the lower Red trendlne as well, price seems to be following with both of them at the moment.

i like your trading strategy, however, i cant see your images. could you email them to me ([email protected] ) or create a PDF for your stategy.

Do you mean you just can't make out detail in the images as you scroll through the messages? If that's what it is, you can click them and they'll come full size in a new window.

As an example Ill use the GBP/Yen at the close of a Friday and well walk through the possible trade signals that we see.
1st the way i use fibs or my perspective on them are they represent a measurement of any particular up or down movement in which the high and low point of this particuler movement in price represent a barrier, if this barrier is broken the measurment of the area between the high and low of it give us the possible movement price can make once it breaks away from it based on the size of the area it is measuring.
This measurment has equal distances.
The distance from the short fib to the low is equal to the low of the short fib to the 1st target, vise versa for the long fib to the high, the high to the 1st target.
The most important fib levels to watch are the 38.2, the 50 and the 61.8 especially on our swing fib that we pull along to follow the market as they are our first indication of the direction price will take.The high, the low and the extentions or targets are where price will go based on what happens at the 38.2 the 50 and the 61.8.
Since we have the fib levels renamed there is no need to worry on which way to pull them its always top or high to bottom or low.If you pull a normal fib with just these 3 levels on it in either direction the 38.2 and the 61.8 are just reversing positions since the are the inverse of each other and the 50 or the pivot always remains in the same point.The market moves up and down, long and short so if you simply rename the fib levels 38.2 to short and the 61.8 to long you can simplify fibs.The purpose is that if price is going up and breaks the 61.8 (Long fib)from a low it is going up(Long).If price is moving down and crosses the 38.2(Short fib) from a high it is going down.If price is above the (Long fib) comes down to test it and bounces off it is staying long. If price is below the (Short fib) comes up and test it then is rejected price is staying short.If price comes to the 50(Pivot) and breaks above the (Long fib) it is going Long, the reverse if it comes to the 50(pivot) and breaks the (Short fib) it is going short.
In reality fibs are very simple.
With this in mind now lets walk through using them on the GBP/Yen and how they could have helped us base our trading decisions From this Friday here and into the next Monday and maybe through Tuesday.
As you can see from the first chart price opens well below the close of Friday and quickly tests...Yes the targets of the Intraday fib on Friday.Once it test them price retreats and begins to leave candle showing price moving back up.Once price begins to move away from the low we can pull our Intraday fib to this new low since there still has been no retracement.
Now how do we tell where price can go from here...this is where the swing fib comes into play.We first pull the Intraday to the new low and now place the swing fib on the chart to use as a price gauge to detirmine what the possiblities are if it continues up or if will continue up.Now the 3 levels in the swing fib show us that the long fib is broken and price can continue up, but first will it break the High of the swing fibs area?
Continued....

From this point we see that the swing fib targets the Pivot of the Intraday fib..higher than it actually made it too, but we are not done.If you notice there is a consolidation period before price made its run up if you simply pull the swing fib high to the high of this consolidation period we can get a closer measurement.What I look for is a turn in price or where price moves lower from a highpoint to indicate a high to pull to.You can take another measurement from here and you see the targets of the swing fib come pretty close to where the Intraday Short fib level is.The meaning of this is the swing fib is telling you that price had the potential to move that far and the chances for a rejection at the Intraday Short fib was a high probability.Which turns out to be the case.In short once we established the Swing fib area (high to low), we see price break through its long level saying yes price is going up you only need to monitor it as it attempts a break on the high of the swing area and subsequently to the Swing targets,Price is rejected and begins to fall off.
The Intraday fib levels have more strength as support or resistance zones than the swing fib so you would want to pay close attention as each one is approached. If price had broken the Intraday short fib level you can simply move the swing fib back.
Continued....

Now since we have the rejection from the previous day Intraday Short fib level..will price continue down, make a small bounce and continue up?
Take the swing fib now once price has moved away from the Intraday Short fib and we have a new Swing fib area to work with and wait for the next opportunity.We just repeat the process now by following the price as it tests the levels of the Swing fib as you can see price continues short once the Short fib level of the Swing fib is broken but fails at the Swings low.Remeber we watch fro the break of the high or low of this area before we consider the targets. A second attempt is made to go short and an entry here would have been a failure unless you move you trades to break even after 20 pips or so,but as soon as price crosses the Swing fibs levels you know to exit and reverse...because what does it mean when the Long fib is crossed...yep price will most likely go up now. It does and the Swing area once broken shows where price will most likely stall..
Several opportunities presented itself throught this day and each trader would have traded it differently.The object here is to trade the gaps between the Short fibs to the low and the Low to the targets and vise versa for long positions.
Now at the end of this day we have our Intraday fib moved up to this day and the swing fib on the last move of the day.
Continued.......

OK now that we have completed Monday and have our fibs set for the next day we watch the consolidation period to look for new lows and highs to establish our Swing fib and area on.
Repeating the process from the previous day we see we do get a new low during this consolidation period.A few hours later we get a break and target hit from our Swing fib and area.The targets of the Swing fib hit very nicely with the Intradays Long fib and makes the bounce from. The Swing fib shows us the potential movement price can travel and it targets the Intraday Long fib indicating price has a high probability to bounce here and it does.
Following along with the Swing fib now we pull it to the new low and create our next Swing area to watch price action from, we see the very same thing now.Price makes a strong move off the bounce retests support from the Swing area then continues on to the targets. The exit sign would have been if the Swing fib levels would have been crossed.
So there ya have it a short lesson in following the market and using the Swing fib to gauge price movement.
Another thing to consider are no Daily fibs were placed on here and could have made some difference as well, this is only as a demonstation as to the use of the Swing fib and following the market.
Continue the same process now and backtest over and over again on any pair you wish over time you will get the hang of it and see the market in a new light.Use any indicator you wish that you think will help but trading without them and learning market flow will serve you better in the long run.
try this same process in Demo during live trading conditions as that is where you best experience is going to come from.

Wow the light is showing up real good after your awesome explanations and
lessons right from the start of your thread. I,d just like to say thanks man
for taking the time and effort to put this out there for the likes of myself and
others to learn from. imho this is probably one of the most valuble threads
anyone could learn from.
Thanks Bo
Russell

It can help make a difference, but I urge everyone reading this to try it in a Demo. Trading in live conditions and backtesting with a chart you know the results from are 2 different animals, just like trading a demo and trading with real money. It doesnt happen overnight but with these tools and how to make better use of them at least you have some ammunition in your arsenal.

so what you mean is that for the swing fibs you take the 1st lowest low before the high is made?
regards,
bksujal

this is indi bobokusfibo for weekly and monthly.

thanks to cja for modif this indi.

"Instead of just making this indicator in Weekly setup, you can now select timeframes from H1 to Monthly, you can display several different timeframes on the 1 chart, alter the colors for each set of lines and i have set a warning in place if you attempt to load a timeframe under H1 as per the supplied screenshots. When loading more than 1 timeframe make sure that you change the Fibo_Num as per the screenshot to something different than the 1st timeframe."
information from him about this indi. Sory my english very bad

Looks good for 1440 and 10080 timeframes.Its got a few extra targets to it though

If your referring as to where to draw the Swing fib its basically every movement over 30pips.

My current starting points going into Sunday/Monday.I would expect both Cable and the Euro to open with a gap up.Cable has already tested 2.0550 and the Euro has seen 1.4420 in the early going.Prices coming from Saxo Bank feed.

GBP/Yen starting set up, looking for it to open lower.

$/Yen and the Euro/Yen starting setups.Open price on these may be mixed..up on the euro/yen down on th usd/yen.

Wow.. been reading this thread twice already.... still not fully understand the concept just yet. However, it helps me to understand about trading with the Fibs more than before..... Keep up the good work... and MANY THANKS..