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Powerful Fib Based System - by DAZfx

  • #21
  • Mar 19, 2008 1:05pm Mar 19, 2008 1:05pm
Quoting ChowClown
Thanks Dazfx, could you clarify the criteria you used to determine the daily trend on EURUSD was short, prior to taking this trade?

"Bonza" strat btw
Hey Daz, thanks for your answers. I love your strategy, is plain and simple, so I definitely need to practice it.

The last question I have is the same with Chow. How do u determine the trend for the 1H? Do you use 200 ema or smthing?

Thanx.
We leave no soldier behind.
  • #22
  • Mar 19, 2008 1:18pm Mar 19, 2008 1:18pm
Quoting ChowClown
Thanks Dazfx, could you clarify the criteria you used to determine the daily trend on EURUSD was short, prior to taking this trade?

"Bonza" strat btw
This is where discretion comes in. A series of lower lows and lower highs on the daily and a downward channel on the 4Hr. On top of this, a rejected short trade on the EURUSD yesterday which worked out well.

But I agree, if you want to follow the system strictly, this would not have been a trade, instead, you would have traded the GBPUSD setup.

Thanks
  • #23
  • Mar 19, 2008 1:24pm Mar 19, 2008 1:24pm
Quoting gagiul
Hey Daz, thanks for your answers. I love your strategy, is plain and simple, so I definitely need to practice it.

The last question I have is the same with Chow. How do u determine the trend for the 1H? Do you use 200 ema or smthing?

Thanx.
I don't think you need an EMA to tell you the direction of the trend. You can just look at the chart and say if its trending up or down. But if it helps, you can use the 200MA. I prefer the old method of observing the charts for 'lowerlow lowerhigh' & 'higherhigh higherlow' to determine the trend direction.

Thanks
  • #24
  • Mar 19, 2008 2:34pm Mar 19, 2008 2:34pm
HI Daz

The difficulty of this technique is looking for the impulsive wave. As long as you find the correct impulsive wave then there is no doubt that you will win the trade. However, if you have the wrong impulsive wave, then it is when people lose most.

You mentioned that looking for the impulsive wave when it is following the bigger trend. By that, did you mean looking at the direction of the daily candle starting at 5pm Eastern time everyday (5pm eastern time is when a new daily candle start forming) and using the direction of that daily candle as the major trend? I tried to use the direction of this daily candle as the major trend for the trade, however, in some instances, that daily candle is the opposite of a bigger major trend, and so if i use the direction of that daily candle to find the impulsive wave, then I ended up losing the trade.

How do you find the impulsive wave in the most effective way?
  • #25
  • Mar 19, 2008 3:22pm Mar 19, 2008 3:22pm
Quoting fiborex38
HI Daz

The difficulty of this technique is looking for the impulsive wave. As long as you find the correct impulsive wave then there is no doubt that you will win the trade. However, if you have the wrong impulsive wave, then it is when people lose most.

You mentioned that looking for the impulsive wave when it is following the bigger trend. By that, did you mean looking at the direction of the daily candle starting at 5pm Eastern time everyday (5pm eastern time is when a new daily candle start forming) and using the direction of that daily candle as the major trend? I tried to use the direction of this daily candle as the major trend for the trade, however, in some instances, that daily candle is the opposite of a bigger major trend, and so if i use the direction of that daily candle to find the impulsive wave, then I ended up losing the trade.

How do you find the impulsive wave in the most effective way?
I will try to answer to this question, as it is a problem for me as well to determine the correct impulsive wave. But I tried to re-read everything Daz said here and he actually stated very clear how to catch the last impuslive wave.
First of all, you look at Daily. Lets take GY. Even yesterday wasa bullish day, this doesnt mean that the trend is up - it is obviously down, even a child can guess that. So we trade on the short side only.
Then we move to 1H or 4H timeframe, depending on your taste.You look at the chart, and try to spot the last swing high , i.e. the last peak the price made before falling again. This is your point A. Then you look for the swing low (it should be only one swing low, coz if there are 2 or more, it means you didnt determine the correct swing high). The last swing low is where the price start to turn up. This is your point B. Now you pull the Fibs from A to B and wait for the price to come close to 61 or 78 level.

And from here you know what to do. Hope I cleared something for you.
This is a trade I got in today for GY, and Im still in, as I am waiting for the 61 extension to be hit. It is a good trade, thank you Daz.

I love this method because it reminds me of the basics of trading I used to read when I started my forex journey, and still I didnt know how to properly implement them. Now these tools make sense together.

Cheers.
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We leave no soldier behind.
  • #26
  • Mar 19, 2008 4:32pm Mar 19, 2008 4:32pm
This is one of the best systems available here in the forums, price action at fib retrace for entry based on 1-2-3 method and fib expansion for exits using very small stops placed at a safe level.

Thanks DAZ
Regards
  • #27
  • Edited 5:28pm Mar 19, 2008 5:09pm | Edited 5:28pm
Quoting fiborex38
HI Daz

The difficulty of this technique is looking for the impulsive wave. As long as you find the correct impulsive wave then there is no doubt that you will win the trade. However, if you have the wrong impulsive wave, then it is when people lose most.

You mentioned that looking for the impulsive wave when it is following the bigger trend. By that, did you mean looking at the direction of the daily candle starting at 5pm Eastern time everyday (5pm eastern time is when a new daily candle start forming) and using the direction of that daily candle as the major trend? I tried to use the direction of this daily candle as the major trend for the trade, however, in some instances, that daily candle is the opposite of a bigger major trend, and so if i use the direction of that daily candle to find the impulsive wave, then I ended up losing the trade.

How do you find the impulsive wave in the most effective way?
Yes gagiul got it right. You take the trade in the direction of the daily trend (if you are trading off the 1hr) and not based on action of one daily candle.

Btw, Gagiul, good luck on the trade. I would have scaled out a position at FE 50 though, and let the rest ride. Locking in profits is very important.

Thanks
  • #28
  • Mar 19, 2008 5:20pm Mar 19, 2008 5:20pm
If you want to get a better entry, go to the 5/15min TF after the confirmation candle has been formed. Look for a reversal candle to make the entry (ideally near the 5MA on the hourly). This way, you will be able to place the tightest of stop and enter just before the momentum kicks in.

Thanks
  • #29
  • Mar 19, 2008 5:27pm Mar 19, 2008 5:27pm
Hello DAZ
Your system is Awesome
Love it.
Thanks for share it.

Regards
Valter
  • #30
  • Mar 19, 2008 5:31pm Mar 19, 2008 5:31pm
Hi Daz, i'm using a variation of this system and captured 100pips on the GBP/JPY move south. It's a powerful strategy. What makes it strong is that many of the big boys use strategies like this, which means if we can get into the same moves they do, we'll definitely profit!!
  • #31
  • Mar 19, 2008 6:30pm Mar 19, 2008 6:30pm
Dazfx, On your charts there is a faint blue dotted line that goes from A to B, B to C. Is that an indicator that draws A, B, C (same as 1,2,3) or something you draw, Thanks. This seems like a real pip maker. Paul
  • #32
  • Mar 19, 2008 6:52pm Mar 19, 2008 6:52pm
Quoting plind
Dazfx, On your charts there is a faint blue dotted line that goes from A to B, B to C. Is that an indicator that draws A, B, C (same as 1,2,3) or something you draw, Thanks. This seems like a real pip maker. Paul
The blue dotted line is the Fib Expansion.

Thanks
  • #33
  • Mar 19, 2008 10:40pm Mar 19, 2008 10:40pm
Daz,

there are many instances that the last impulsive wave has retracement of only up to 38% and then take off, never go to 61% or 78%. YOu mentioned that for your method to work, count only the last impulsive wave, not the entire wave. However, some last impulsive waves only go to 38%. ( my guess is that if it does not retrace to at least 61% then you do not take the trade right? if that is the case then we would miss alot of chances to get some pips. I see that 80% of the time they do retrace to 38% and take off from there. )

Do you have any comments on this?

thanks.
  • #34
  • Mar 20, 2008 2:24am Mar 20, 2008 2:24am
Powerful system, but I think for newbies it might be a touch too difficult due to the discretionary nature.
  • #35
  • Mar 20, 2008 2:58am Mar 20, 2008 2:58am
Fibo,

See post 11.

herty
  • #36
  • Edited 4:29am Mar 20, 2008 3:40am | Edited 4:29am

wonderful,,,,



thx 4 sharing


I've been using chart patterns but actually ur trading system is amazing

would I ask u plz to share ur other systems

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I wonder why do traders look for sick trading strategies and don't look for this diamond.

I think this system is 90% profitable


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freedomfigher
  • #37
  • Mar 20, 2008 5:03am Mar 20, 2008 5:03am
I think we will be positioning today for new shorts in GY and EY. Now they are moving against the trend, and soon should reach 61 or 78. Be ready to short them.
Im waiting for GY to reach 199.50 which is also R1 for today.
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We leave no soldier behind.
  • #38
  • Mar 20, 2008 6:20am Mar 20, 2008 6:20am
Quoting forexmoments
Powerful system, but I think for newbies it might be a touch too difficult due to the discretionary nature.
....and thats why most n00bies lose!
  • #39
  • Mar 20, 2008 6:21am Mar 20, 2008 6:21am
short on uj H1 coming ?
  • #40
  • Mar 20, 2008 6:26am Mar 20, 2008 6:26am
Good observation Gagiul. I am looking at GJ amongst other pairs, and I see this. My swing High is different. See how this hourly candle closes. I will only take it if the Risk/Reward is good.

Thanks
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