DislikedThis concept is a scalper dream just place orders from fib levels to fib levels according to trend.Ignored
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.