Fibonacci Trading with Bobokus

Quoting forexpipmaster

Disliked

Hi Bo, is my screen shot correct ?? Because of this big move up, I have pulled the Intraday fibs from the low on the 20th, and the Swing fib from Fridays high to last Swing Low.

I am anticipating a Buy at a break of the Swing Long at 1.9674, and or a Sell at a break of the Swing low at 1.9653.

I am also seeing Fridays high bouncing off of the upper trend line, from the 4hr
chart, and I see a possible retracement down towards the Intraday Pivot area
before it continues back up. Does that sound about right ??

Ignored

Quoting Jared

Disliked

Hey Bo,

I know you have taught us to wait for a candle opening outside of the decision zone, but I am just curious about your trading style. Do you place pending orders on the fibs before the market gets there with stops on the other side of the decison zone? For example, a buy limit on the long fib in an uptrend with the stop below the short fib and a target at T1 or T2.

I have been trying it on vHands with pretty good results. I am trying to figure out a way to reduce my screen time and trade from larger time frames and this seems like one way. I have been trading full time since last Nov so could afford screen time but now I am going to be very busy it looks like and won't be able to do that, so I need to find a way to reduce screen time.

Ignored

Quoting Bobokus

Disliked

Me personally I will trade the price action to the levels, I just suggest until one gets more experience to wait for a fib level to break before entering, but to answer your question yes I do trade very similar to what your seeing with Vhands...in an uptrend I will set buy limits in the levels and in a downtrend i will set sell limits. yes a break of the opposite fib is an exit signal or can be considered a stop. Even there sometimes a spike can reach your stoploss. I will usually set my entry closer to the Pivot or 50 fib level which will reduce some of the drawdown if your wrong...its not as far to the opposite fib that way, if it isnt picked up when the levels are tested i will enter on price action and delete the pending order.

Ignored

Quoting Jared

Disliked

Thanks. I am testing on vhands right now, I'll try that. Putting an entry on the pivot creates a better r:r.

I am looking back on losses I have had in the past (real $ not vhands) and it seems like I exit prematurely most of the time, its not that the trend decides to reverse right when I decide to exit. Usually the market starts going the direction I orignally anticipated eventually. If I pull fibs from a larger time frame I find that if I would have just placed stops based on that time frame I would have been fine. This makes me lean toward the idea of having a very wide stop based on a larger time frame, but the problem with that is r:r goes down significantly, so it may not be a good idea.

There is also the idea of only trading the larger time frames, because the analysis it typically more reliable. However if I do this then I miss out on all of the little market moves where could have cashed in. For example, the market might be on it's way to T1 in an uptrend from a long time frame, but if I buy the dips and sell the targets on the way to that larger time frame T1 then it would be much more profitable than just riding it to T1 on the large time frame and not making any trades in the mean time. But, then the risk of getting stopped out a bunch and having a string of losses increases on the smaller waves. So what to do? I guess maybe the best it to combine both. Keep positions open based on larger time frame analysis, add to the position on the big dips, but also buy the dips and cash out at the targets on the little waves as I am riding the larger time frame wave.

This is making me want to go to the beach.....

More testing......

Ignored

Quoting Bobokus

Disliked

Me personally I will trade the price action to the levels, I just suggest until one gets more experience to wait for a fib level to break before entering, but to answer your question yes I do trade very similar to what your seeing with Vhands...in an uptrend I will set buy limits in the levels and in a downtrend i will set sell limits. yes a break of the opposite fib is an exit signal or can be considered a stop. Even there sometimes a spike can reach your stoploss. I will usually set my entry closer to the Pivot or 50 fib level which will reduce some of the drawdown if your wrong...its not as far to the opposite fib that way, if it isnt picked up when the levels are tested i will enter on price action and delete the pending order.

Ignored

Quoting olorunloniem

Disliked

Hi Bo,
lovely results were seen when i was testing your strategy on vhand.Thanks for the wonderful
works you did to take your time out to impact, you an angle sent to deliver the forex captives
from the bondage of blind trading.
I have question to ask you Bo.I encountered a situation where the uptrend fib,downtrend fib and
the swing fib T1 and T2 were hitted. WHAT DO I DO WITH MY UPTREND FIB? Is it no longer relevant?
the downtrend fib was redraw to the new low.Thanks for your quick response and sorry if the
question seems to be drawing the thread back,I major on the exercise given on page 52 to 61 on
this thread.Also what does it imply when such occurence happen, cause I noticed initially that
the uptrend fib,down trend fib and the retracement fib fell on the same decision zone?
Thanks
Olorunloniemi.

Ignored

Quoting forexpipmaster

Disliked

Hi Bo, you said ,that you will trade the price action to the fib levels, does that mean that you are always in a trade, and wait for a break of another fib level for a reversal ??

Ignored

Quoting Bobokus

Disliked

No not always in a trade, Im very picky about my entry. I will sit on the sidelines until I see what I want, I should rephrase it to say the price reaction to the fib levels once they are tested.

Ignored

Quoting Mukesh

Disliked

whats 'vHands'? can someone please explain or direct me to where
I can read.

Thanks.
Mukesh

Ignored

Quoting galaxymom

Disliked

http://www.forexfactory.com/showthread.php?t=60849

This is the link to the thread that will teach you to use the application. Vhands allows you to retrade the actual market in high speed. You put in the pair and the timeframe, and you can enter orders, etc., pause it to move your fibs.

Ignored

Quoting dhalsim

Disliked

hi, bo
you mentioned price action many times,
and I dont know what the price action means,
does it means the same thing in james16 Chart Thread or something similar?
or could you explain it
Thanks!

Ignored

Quoting hiswords

Disliked

Hello,
Pls,help me check this fib's as i just discover a new high.But ,should i need to pull from the low point at 1.9361,the low of last Thursday? if yes how important is it?
thanks,
hiswords

Ignored

Quoting Bobokus

Disliked

Best way to describe price action is the bare chart itself and what formations are the candles and waveforms making, Higher highs and lows, Lower highs and lows, are the candles continuing to break the previous candles high or low, The basic candle formations...spinning tops,railroad tracks,pins, things like the speed of the movements. If you google search candlestick formations you may find some help there. The rest is learning from experience of chart time.

Ignored

Quoting Bobokus

Disliked

No not always in a trade, Im very picky about my entry. I will sit on the sidelines until I see what I want, I should rephrase it to say the price reaction to the fib levels once they are tested.

Ignored