Indicator Free Trading - Skunny

I'm not sure I agree with the rest, but this sentence is exactly what I've taken away from this thread after following it the last week.

There seems to be too much emphasis on being 100% correct from people who have just begun trading this strategy less than a month ago. Nothing comes that quick to anyone in this world, so I think some got too carried away in their analysis.

One of the easiest strategies to implement though for me is to trade from one retracement level to the next. It's not 100% and it's not the "holy grail", but it's clearly a very high probability trade that once a fib S/R level is breached and the price settles on the other side it will continue to approximately the next fib level. I've been setting T/P and S/L conservatively on the other side of the fib level that's been breached and above/below the high/low of the last 1hr bar to close on the other side within reason.

The key is finding the correct peaks and valleys (or candles) to draw your fibs. It's been a hit and miss exercise for me on the intraday time frames, but clearly improving every time I look at a chart and look back at mistakes I've made. There are some fib level gaps on the 1hr/daily charts that amount to hundreds of pips, which are clearly the highest probability trades to make if there is no clear S/R level ion the way to your TP.

If this was completely confusing, I can post a chart or two but the best piece of advice I've seen here from Skunny is to follow the price action and keep it simple.

Question for Skunny or anyone else who has been actively following this:

Which fib levels would take precedence in this situation... a peak/valley on a Daily chart that lasts 10-14 days or a fib drawn from the high/low on a weekly bar?

When I started drawing fibs on different time frames, I had problems with my charts getting "over-fibbed" and it becomes unclear which price levels are acting as S/R when there isn't much of a delta between the fib points. I eventually decided to avoid trading on single bar fibs, but do pay attention to breaches of 0/100 levels. When I trade on multi-bar peaks/valleys, the price typically follows from level to level but there are always areas where price will react that haven't been fibbed by me and thus leave me scratching my head.

Any suggestions appreciated, but keep it simple please.

Downtrend...plot high to low?

Uptrend...plot low to high?

I don;t know from wild honey... but one thing that has worked for ME over time is when I have a question... I put it to the charts to see if if I am right. (sometimes i get lazy and ask... but ocd gets ahold of me and I test anywho)

that is really the only thing I trust now a days. Lord knows I wouldn't trust my money with someone else..I barely trust myself... less on gameday!!


Sizz.

Question for Skunny or anyone else who has been actively following this:

Which fib levels would take precedence in this situation... a peak/valley on a Daily chart that lasts 10-14 days or a fib drawn from the high/low on a weekly bar?

From my understand of TF it would be the daily that lasted 10-14 days because there would be two weeks of movement in that time period instead of a one week bar. But skunny can correct me if I'm wrong.

Hey Skunny, great thread. I've been following along since the beginning. Quick question for you. If we us 0-100 as the range and then target the 138.2 or even the 161.8 Fib, assuming we use the support or resistance (0 or 100) as our stop, it doesn't seem to provide a very good Risk to Reward ratio. You've stated that it's possible have a great winning ratio, but it sure is hard to risk a lot to make a little. A couple of losses could outweigh a lot of small gains. Thanks for taking to time to help us all out and get us to think about the markets through a different mindset. HAPPY NEW YEARS!!!

Nice thread

Thanks Skunny for taking the time to guide us on our individual journeys on price action, and hello to everyone in this thread, I have just got to current last page and on a very steep learning curve.

I currently have this demo trade running, does this make any sense?

Or is it here?

WOW!!!!!

skunnys latest 1hr chart tells it all
http://www.forexfactory.com/showpost...&postcount=825

just made 21 pips long from the 100 fib break(1.9998) to 138 fib (2.0019) on gbp/usd

also long gbp/jpy 31 pips from the 100 fib (224.13) to 138 fib (224.44)

still in Eur/jpy short already at break even from 50 fib (165.01) waiting for tp at -138 fib (164.53)

just remembered that I entered the eur/jpy short on a feb2865 "V" daily formation entry.

i've tried to learn to identify the swings better, with the help of the fractals, for me the inside range of a drawn Fib plays in this case no role, everytime if the Baseline (S/R) is penetrated enter a trade in the direction of the nearest extension, in the picture short... everytime the target is hit delete the fib of this trade...


to fractals: a fractal is build of 5 candles, a midcandle which is building the fractal and 2 candles to the left + the right, which are building no higher or equal highs on a high fractal, or lower or equal lows on a down fractal... so u have 2 units time to get a confirmed fractal and place ur fib to get a trade...

the next thing is that we are able to automate this method, because everytime the only thing u need is a confirmed fractal up and a down to draw a fib, and the fractal is confirmed after 2 units of time...

the chart a posted looks ugly because so many lines, but notice everytime a range is confirmed by hitting the target it is finished and can be deleted...

I look forward for somebody who can show some backtested results over a view years...


Happy New year to all

Good stuff Ig! May be elementary to some but helps me.
Thanks for the chart.

my biggest problem was before that i was trying to catch every move and try them from beginning to the end, u know where this ends...

this helps me to stay away from the greedy thing

i'm still learning the priceaction thing and how it reacts, but from day to day i'm getting more confident in indi free trading

Round Numbers create resistance.

Keep it simple...heading for my target....posted 12 hours ago

Attached is a 1hr chart of GBP/USD.

I just used the latest swing up to get my fib levels...but instead of looking for a fib retracement to buy on a dip, I look at what happens when the low of the swing is penetrated.

You can see once the low is penetrated it trades down and through the 1.38 level almost exactly to the 1.618 level.

Maybe by plotting the fibs on each latest swing and only trading the breaks of the highs/lows of the swing and setting initial targets at the 1.38 level is the way to go.

I have ignored the other timeframes projections and just concentrated on the 1hr for this projection.

Attached is the 4hr GBP/USD chart.

Ok guys...target hit....party time. See you all next year. Thanks for the tips Skunny you are the best!!!

Ok guys... For all your PM,s on how I did it. Skunny said to only use 0 and 100 and then follow extensions. Thats all I did... Pull up daily charts and use fib retrace tool on MT4 platform. Price went below previous magor support... and headed for extension.

great job! skunny rules!!! woohoo party time excellent!!!!! happy new year!!!! ok but can some please please tell me how to draw those fib extentions with mq4

does anyone please have an indicator that can draw just the skunny fibs....

or else explain how you delete the unnecessay fibs (like 61 and 50) and how you put in the -138 and -161 fib extentionss......

HELP!

thanks in advance and happy froggin new year! woohoo!!!!!

It's in the thread, near the beginning.