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Fibonacci Trading with Bobokus

  • #2,021
  • Feb 2, 2008 8:55pm Feb 2, 2008 8:55pm
Quoting ernesto
Bo, thanks at lot for all your efforts - appreciate that very much. Went through the last weeks again using your usual fibs in combination with 5min fibs for entry / exit. Looks very promising - at least to understand the market action much better. I am not sure anybody knows but all market action IN EVERY TIME FRAME depends on fibs. Really fascinating!

I am slowly understanding now what senior traders in FF mean with creating your own habits for trading.

Getting rid of all the indicators I had on my charts (despite market volume what seems still interesting to me) I would be very interested in your opinion about momentum indicators, e.g. Auslancos Momentum method. Investing lots of time with those 5 MAs I was able to figure out that they are usable for mid-term trading - especially to recognize trends and reversals. Understanding that this is not main topic of your forum I would be glad to have your opinion about that.

Thanks a lot for your honest opinion in advance!
Theres nothing wrong with using Indicators, the problem is most new traders start using indicators to trade from without learning the market flow first. My SwingTrader2 indicator is a momentum indicator.
My take or suggestion is to learn the market flow with support and resistance until you get to the point you can trade from that successfully, then apply an indicator and you will see something different when applying them. You will find yourself looking at the chart and price first for entry's and exits and the indicator second as a confirmation of you decision. Instead of looking to the Indicator for your decisions.
Auslanco is an experienced trader, he has fine tuned what he found to be successful for him. He understands market flow and has apllied what he has learned over time. You take what you find works for you from other experienced traders and dump the rest, dont try and mimic what someone else does, but take from their experience the things that make sense to you and you develope a style from that into what works for you.
For me it was fibonacci, over time it began to make more and more sense to the point I no longer needed anything else. The market became clear to me, but it was experience of using them on a consistant basis that I developed to the point I am now. Its never the system or the method its the Trader using it. I can show you the tools but I cant teach you to trade.
Experience using the tools of the trade is how you become successful. Whether its a naked chart, fibonacci, elliot wave,ma's, secondary indicators, they are all tools of the trade it doesnt matter but at some point you'll find you have to stick with something to become successful with whatever weapon of choice you decide to use.
  • #2,022
  • Feb 2, 2008 9:16pm Feb 2, 2008 9:16pm
Quoting Bobokus
I can show you the tools but I cant teach you to trade.
Liar.


Signed,
your humble student
class of '07
"Support and Resistance either holds or it doesn't." -Anonymous hillbilly
  • #2,023
  • Feb 2, 2008 9:59pm Feb 2, 2008 9:59pm
Quoting Bobokus
My SwingTrader2 indicator is a momentum indicator.
I never could figure out how to use your momentum indicator (how do you use it anyway?). However, using vHands and studying price action I have created my own strategy of which momentum is the key component, but it is determined just by eyeballing increased velocity of movement on a chart, no indicator. A one minute chart side by side with the one hour helps determine momentum as well. I am fairly confident with the strategy I have discovered, but it requires more forward testing before I brag about how good it is. Many thanks to Bo for his priceless knowledge on fibs. The knowledge I've gained in this thread I am definately using and going to keep, not throw away.
  • #2,024
  • Feb 2, 2008 11:50pm Feb 2, 2008 11:50pm
Quoting Thexder
Liar.


Signed,
your humble student
class of '07
We'll I try anyway, you never know. LOL
  • #2,025
  • Feb 3, 2008 12:15am Feb 3, 2008 12:15am
Bo

I'm wondering, you draw the horizontal lines that correspond to the Intraday fib, looking for PA to break these lines. Is that because that is considered the support and resistance lines?

Thanks
Mom "To conquer fear is the beginning of wisdom." – Bertrand Russell
  • #2,026
  • Feb 3, 2008 12:26am Feb 3, 2008 12:26am
Quoting Jared
I never could figure out how to use your momentum indicator (how do you use it anyway?). However, using vHands and studying price action I have created my own strategy of which momentum is the key component, but it is determined just by eyeballing increased velocity of movement on a chart, no indicator. A one minute chart side by side with the one hour helps determine momentum as well. I am fairly confident with the strategy I have discovered, but it requires more forward testing before I brag about how good it is. Many thanks to Bo for his priceless knowledge on fibs. The knowledge I've gained in this thread I am definately using and going to keep, not throw away.
We'll there ya go thats how its done, after all its you that has to build confidence or be satisfied in what your doing enough that you dont need someone elses advise on entry's and exits inculding me, keep up the work your doing and build on that and remember failure sometimes is part of the learning process, I know I have failed many times but with persistance to succeed you will prevail. Just dont give up because you run into a loosing spell, times like that are where you will build on your experience and show you areas for improvement.
  • #2,027
  • Feb 3, 2008 12:29am Feb 3, 2008 12:29am
Quoting galaxymom
Bo

I'm wondering, you draw the horizontal lines that correspond to the Intraday fib, looking for PA to break these lines. Is that because that is considered the support and resistance lines?

Thanks
I will use the horizontal lines to mark support and resistance areas im watching and sometimes they dont match the fib levels but none the less need to be watched.
  • #2,028
  • Edited 6:08pm Feb 3, 2008 5:04pm | Edited 6:08pm
Quoting Bobokus
Even though this time the break of the low worked out it wasnt the picture perfect setup i was looking for but ill put these in the bank, Done for now till we get another break short or another waveform develops from now into the US session.Price has hit my target 2 of the the swing set and target 1 from the Intraday set so ill close my shorts here.
Hi Bo,
Could you point please, where you entered your trades in this case (post 24) ?
Thank you very much for your words of experience !
  • #2,029
  • Edited 7:54pm Feb 3, 2008 5:31pm | Edited 7:54pm
Ok, here goes my first stab at a Trading Plan - GU.

My first realization was that had I not gotten this far I would not have seen THE BIG PICTURE at all. I would have been expecting price to start a big retrace after the almost 300 pip fall of Friday, not that it might not.

When I looked at the Daily chart, it was clear that the recent weeks was the retracement of the DownTrend, and this move on Friday appears to be price resuming the Trend, TWT.

Going to the H1 chart, price has consolidated over the past week, not really making any headway to the top having reached the Monthly High and the Retracement fib Long.

After that movement on Friday support would seem to be near 1.9661.

I think price will need to break above 1.9720 or 1.9759 for the retracement to continue long.

If price continues to break down, thru the Monthly pivot, Retracement pivot, Day Low, etc. i would look for the Down Trend to continue and the possibility of reaching the Intraday T1 or at least the Intraday Short level.

I would look to enter @ 1.9641, but that is probably too close.

PS: I've attached a Trading Plan worksheet based on Bo's points, if anyone is interested.
Attached File(s)
File Type: doc TRADING PLAN.doc   26 KB | 940 downloads
Mom "To conquer fear is the beginning of wisdom." – Bertrand Russell
  • #2,030
  • Feb 3, 2008 5:44pm Feb 3, 2008 5:44pm
Quoting galaxymom
Ok, here goes my first stab at a Trading Plan - GU.

.

Nice trading plan, that could help alot of people out of bad trades if they were to print of few of them out and complete it before making a trade (hint-hint new traders)
by following that plan it would keep you from making stupid mistakes like making a trade when you see a candle shooting in one direction and "chasing" the market. Good job Galaxymom.

P.S GO PATRIOTS, not that I'm a patriots fan, I just don't like NY.
Just Trade It
  • #2,031
  • Feb 3, 2008 6:49pm Feb 3, 2008 6:49pm
Quoting Bobokus
A clean break would be a candle opening outside of the highlighted trading zone.However there are gonna be times when price just starts to take off very quickly from a news event or soomething to that nature and youll have to make a judgement call then.The highlighted area is based off the Intraday fibs and where we want price to visit before entering..its not the only entry just the optimum. last night I enterd on the break of the high. When price does not retrace past the 23.6 its ................. .
Hi Bo,
At post #42 is the number 23.6 an error ? Shouldn't it be 2.0306 ? Thanks a lot !
  • #2,032
  • Feb 3, 2008 8:50pm Feb 3, 2008 8:50pm
Quoting Bobokus
Now do the same thing with the Intraday fib and trade it exactly the same as you would the Swing fib, this time use the swing to follow along your trades once youve entered based off the Intraday set.You will see a bigger picture from this.Then the swing fib will make even more sense that it does to you now.
I'm excited!! this is what I've been seeing on your charts, I think, so that as price blows thru the swing's targets, keep looking at that next Intraday fib level. The bigger picture.
Mom "To conquer fear is the beginning of wisdom." – Bertrand Russell
  • #2,033
  • Feb 4, 2008 4:59am Feb 4, 2008 4:59am
Quoting scardi
Hi Bo,
At post #42 is the number 23.6 an error ? Shouldn't it be 2.0306 ? Thanks a lot !
Hi Scardi

The 23.6 is correct and refered to the popular Fibonacci percentage of retracement of a move (others are 38.2, 50, 61.8 an 78.6). In theory the more momentum a move has the less they tend to retrace before continuing.

p.s Bobokus thanks for your tremendous efforts with this thread!!!
  • #2,034
  • Feb 4, 2008 5:54am Feb 4, 2008 5:54am
Quoting scardi
Hi Bo,
Could you point please, where you entered your trades in this case (post 24) ?
Thank you very much for your words of experience !
If you click on the chart they are on there.
  • #2,035
  • Feb 4, 2008 5:58am Feb 4, 2008 5:58am
Quoting galaxymom
Ok, here goes my first stab at a Trading Plan - GU.

My first realization was that had I not gotten this far I would not have seen THE BIG PICTURE at all. I would have been expecting price to start a big retrace after the almost 300 pip fall of Friday, not that it might not.

When I looked at the Daily chart, it was clear that the recent weeks was the retracement of the DownTrend, and this move on Friday appears to be price resuming the Trend, TWT.

Going to the H1 chart, price has consolidated over the past week, not really making any headway to the top having reached the Monthly High and the Retracement fib Long.

After that movement on Friday support would seem to be near 1.9661.

I think price will need to break above 1.9720 or 1.9759 for the retracement to continue long.

If price continues to break down, thru the Monthly pivot, Retracement pivot, Day Low, etc. i would look for the Down Trend to continue and the possibility of reaching the Intraday T1 or at least the Intraday Short level.

I would look to enter @ 1.9641, but that is probably too close.

PS: I've attached a Trading Plan worksheet based on Bo's points, if anyone is interested.
Good job. Plan out your trading day and execute it. Find the points that will change your sentiment and stick to your plan. Do this every trading day.
  • #2,036
  • Feb 4, 2008 6:00am Feb 4, 2008 6:00am
Quoting scardi
Hi Bo,
At post #42 is the number 23.6 an error ? Shouldn't it be 2.0306 ? Thanks a lot !

Actually it is 23.6, referring to the normal fib number on the default fib tool. The meaning is if a currency cannot retrace past the 23.6 the previous move is still a strong signal and you can look for continuation in that move.
  • #2,037
  • Feb 4, 2008 6:04am Feb 4, 2008 6:04am
Quoting galaxymom
I'm excited!! this is what I've been seeing on your charts, I think, so that as price blows thru the swing's targets, keep looking at that next Intraday fib level. The bigger picture.
Exactly the Swing fib is just the closest to price movement as it blows through the targets look to the next higher of the fibs..ie, Intraday, then Retracement if pulled, the Up or Down Trend next.
If you'll notice where did price come to rest Friday....(hint)did you have your Retracement fib pulled.
  • #2,038
  • Feb 4, 2008 6:05am Feb 4, 2008 6:05am
Quoting bergwagter
Hi Scardi

The 23.6 is correct and refered to the popular Fibonacci percentage of retracement of a move (others are 38.2, 50, 61.8 an 78.6). In theory the more momentum a move has the less they tend to retrace before continuing.

p.s Bobokus thanks for your tremendous efforts with this thread!!!

Sorry didnt see you already answered this one, but your correct and your welcome.
  • #2,039
  • Edited 6:09am Feb 4, 2008 6:08am | Edited 6:09am
Quoting Bobokus
Exactly the Swing fib is just the closest to price movement as it blows through the targets look to the next higher of the fibs..ie, Intraday, then Retracement if pulled, the Up or Down Trend next.
If you'll notice where did price come to rest Friday....(hint)did you have your Retracement fib pulled.
Yes, I did! Amazing ! Absolutely Amazing! 3 Fib levels including the Retracement High within 20 pips all the way down to the Retracement and Monthly Pivot levels.
Mom "To conquer fear is the beginning of wisdom." – Bertrand Russell
  • #2,040
  • Feb 4, 2008 6:18am Feb 4, 2008 6:18am
Quoting galaxymom
Yes, I did! Amazing ! Absolutely Amazing! 3 Fib levels including the Retracement High within 20 pips all the way down to the Retracement and Monthly Pivot levels.
Remember Fridays can sometimes lead into sell offs or position squaring and that is what we got to see this past Friday, its not uncommon. Price action tells the story never at any point friday when the move began could a candle break the previous candles high.It was an uncontested move.
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