Indicator Free Trading - Skunny

Quoting lowell

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Sadly, it was drawn retroactively. But Skunny told me in a pm that if price doesn't react perfectly to the fib, it is drawn incorrectly. So I'm just playing around drawing fibs in different ways after a move, hoping for a clue.

Have any of you really studied the trades that Skunny posted earlier on this thread? I can't help but think there is surely a clue in the fibs he drew.

I think our biggest question here is how to look at a chart and know exactly the beginning and end of a cycle. I have a hunch there is a way to tell by observing PA alone. IF.........BIG IF we know exactly what to look for.

Something that I keep remembering is what Skunny told Blueruby early in the thread about fibbing only the weekly bars. 11 out of the 52 bars Blueruby fibbed would have hit the SL before TP if the TP was set at the 138 after penetration and the SL at the 0 line.

SKUNNY'S HINT: "Don't worry about the winners, just figure out what was different about the losers."

The losing bars had the open and close inside the following bars open/close.
I fibbed the losers and one thing I noticed was that on the losers, after price penetrated the 0 or 100 lines, it retraced back past the 50 line. It seems the winners never retraced past the 50 line before hitting the 138.

So maybe IF the fib is drawn correctly, we can set our SL on the opposite side of the 50 line and be prepared as Skunny says to trade in the opposite direction if the SL is hit? Please test this for yourselves. I have'nt done it enough to form a definite conclusion.

On a side note: Assuming that truly this method is perfect if applied properly, then the losing weekly bars were in the middle of a cycle and the winners were completed cycles. Dunno if I'm making any sense. :

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Quoting lowell

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Sadly, it was drawn retroactively. But Skunny told me in a pm that if price doesn't react perfectly to the fib, it is drawn incorrectly. So I'm just playing around drawing fibs in different ways after a move, hoping for a clue. That's good to know!

Have any of you really studied the trades that Skunny posted earlier on this thread? I can't help but think there is surely a clue in the fibs he drew. Absolutely agree, they are there. I have noticed some rythums between swing lows/highs that repeat but only as price is trending long. I'm looking more into though.

I think our biggest question here is how to look at a chart and know exactly the beginning and end of a cycle. I have a hunch there is a way to tell by observing PA alone. IF.........BIG IF we know exactly what to look for.
I'm not seeing the price always completing the cycle to the 162% Seems like you can count on the 138 but the 162 can take considerable longer to hit in a lot of cases, and occassionally not at all. Anyone else seem differently?

Something that I keep remembering is what Skunny told Blueruby early in the thread about fibbing only the weekly bars. 11 out of the 52 bars Blueruby fibbed would have hit the SL before TP if the TP was set at the 138 after penetration and the SL at the 0 line. I think the reason for having us use the weekly bars were because it was a quick and easy excercise since the weekly highs and lows have a lot of resistance. I thought the question was answered by looking to lower TF's (Skunny mentioned to Blueruby that he might have to drop down in TF's to find the answer). There were in number of cases I looked at that the 4hr or 1hr was finishing a cycle but didn't complete it until the beginning of the new week. Which is what made the price pentrate in one direction but then change directions and move to hit the SL.

SKUNNY'S HINT: "Don't worry about the winners, just figure out what was different about the losers."

The losing bars had the open and close inside the following bars open/close.
I fibbed the losers and one thing I noticed was that on the losers, after price penetrated the 0 or 100 lines, it retraced back past the 50 line. It seems the winners never retraced past the 50 line before hitting the 138. I never ran vhands on those weekly bars, something else to look into!

So maybe IF the fib is drawn correctly, we can set our SL on the opposite side of the 50 line and be prepared as Skunny says to trade in the opposite direction if the SL is hit? Please test this for yourselves. I have'nt done it enough to form a definite conclusion. The only problem is that doesn't the GJ love the 62% retracement?

On a side note: Assuming that truly this method is perfect if applied properly, then the losing weekly bars were in the middle of a cycle and the winners were completed cycles. Dunno if I'm making any sense. : IMO I think this is the key.

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Quoting lowell

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Sizz,
I have the impression that 3-5 pips would be considered perfect. Remember Skunny said broker data varies! I am interested in some of your live charts. I think you have a better grasp on it than I.
Please?

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Quoting lowell

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Pip Hunter: The only charts Skunny posted on that thread are of Gann lines. Are those what you mean?

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Quoting forexlion

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Interesting GBPUSD this week.

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Quoting lowell

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Sizz,
I have my GJ chart set up like yours. My numbers vary from yours by 2-5 pips, either because we have different brokers or probably because I have my extensions set at exactly 161.8 and 138.2 and maybe yours are at 162 and 138?

Will be interesting to see what happens.

Edit: I looked again and our 100 and 0 vary slightly also, so must be the broker thing. I use NorthFinance for my MT4 feed.

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Quoting lowell

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Here's a current chart with a micro cycle (Yellow) fibbed out? Looks logical. We have confluence of the 161.8 Yellow,
100.0 Red, and 50.0 Blue.

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