Powerful Fib Based System - by DAZfx

I think we should all read this
http://www.forexfactory.com/showpost...&postcount=153

I still read the thread again as new things come up in my mind reading all over again. and this has helped my trading as well

Hope am not boring you guyz with my thoughts

Mike

Excellent point, Mike. I use the same approach. I'm not a big fan of scaling out at the FE levels, if i'm honest. I'll take b/e trades all day long if need be I try to let winners run as long as possible with as much (£) in 'em as possible....having said this, the scaling out as per the rules would have been much better in the ranging period we went through earlier in the year.

Long ChowClown, hits the back of the trendline. Still observing the setup

Thanks Mike,

I have learnt from the other systems, but this is less complicated. To the others who asked what I was on tonight. I picked up a few pips on the ej, but I was a bit late getting in. I have taken some pips and left the rest at breakeven or PT2.
I will post a chart (if I can remember how) with my FIBS on it, but not tonight. It is getting late in my part of Oz and I will hit the bed shortly.

Regards

Could some one please tell me how to attach a dealbook 360 chart to this thread, at the moment the only way I think I can do it is by saving to an xcel spreadsheet which is not so good. There must be a way. Help please and I will post a chart tomorrow.

Good night

..i usually just hit the "print screen" key on the keyboard to capture the chart. Paste the whole image into MS-Paint and then crop out the chart and save as a .gif file. You can then upload the file using "manage attachments" when you post.

Thanks Chowclown,

Will give it a go tomorrow some time, my eyes are hanging out. Need my beauty sleep.

Bye all.

hi aajduk, that would be great if you could post your fib targets and how you set them up with dealbook,i would greatly appreciate it.

hey mike, hey cc, i woke this morning to see the aud/usd trade i was in made it to T1 and made me a nice 51pip profit, i am glad i wasn't greedy and only looked at T1. I would have been very disappointed otherwise.

cheers
geoff

Hello traders,

Today, we had four trades in
AUSD
UCAD
EURJPY
EURUSD

and all had 1st tgt met, while other weren't met.
Wot does this indicate?

the prevailing trend is weakening!

thanks

hey CC i knew i had read this on the thread, i wonder if mazdaz did any tye of analysis to come up with this????

cheers
geoff

geoff, u just wanted somebody to help u build confidence on this system i guess. Look at my post earlier, 4 trades taken today, all met tgt 1.

That should give u an ideal,

Thanks

Hi Mike,

Nah i had just remembered i had read it before, and had asked CC about it is all,

i am sure i will get confident in this method as time goes on, i was just wondering if being picky with the signals and only taking trades with a good risk reward ratio on the first target.
i guess i might not like seeing good trades get away but, if the success rate was good then it might not matter.

cheers
geoff

The most important thing is to trade along the daily trend.
Thanks bro

ah yes the subjective discretionary part of the method, the trend determination.

i like jackos description of how to determine a trend, prety basic, even a child can do it, preferably.

cheers mate

geoff

Hey, quick question,
do you guys trade at any particular time of the day, or do you look for setups whenever?

and are you looking at anything setting up at the moment?

cheers
geoff

I trade London and NY sessions mainly. 1am here (UK) now and bed for me.

Until tomorrow.

Hello all,

I will give an explanation of the attached chart. You will notice the ABC wave formation that we all know and look for. Near C and rebounding off the FIB50 is a shooting star or pin candle which is the reversal and 3 candles later the black down candle that closes below SMA5.
The FIB is colour coded and you can see % marked on it. I normally have those as price levels but for the exercise have changed them. The FIB levels 21.4 & 14 are actually the 78.6 & 86 retracement and the 38.2 & 61.8 should really be the other way around but it does not matter. The idea is that if there is a retracement to a blue level the extension will be to a blue level (+10 pips for short, -10 for long), pink to pink, orange to orange. I use basically the same SL as the DAZFX method, but PT1 for me is 1.5 x risk and PT2 IS 2 X RISK or the coloured extension, whichever comes first. I am looking at maybe going to 1:1 for PT1 and 2:1 or FIB level for PT2.
You will notice the RSI 14. I have been experimenting with it as confirmation. It appears (still to be further tested) that if it bounces or rebounds or breaks through the 50 level the entry signal is a bit more reliable.
To set these FIBS on Dealbook, you go into properties and set 0 - red, 14 - pink, 21.4 - orange, 38.2 - blue, 50 - blue, 61.8 - blue, 100 - red, 118 - pink, 127 - orange, 161.8 - blue.
Not sure how to get the same set up on MT4 as I have only just started using it.
All in all, not a lot different to DAZFX. I also throw in the red EMA 25, as you can see it quite often bounces of it.
To put the FIB on the chart pull from your B to your A.
Feel free to add any observations, criticisms etc.

Regards.

Thanks heaps for your explanation mate,
i appreciate you taking the time, and no criticism coming from me.
this ia basically how i have mine set up as well, i was sort of hoping to get an insight into how to simulate the expansion tool, if anyone knows the percentages of this or a formula for woking it out it would be great.
cheers
geoff

Blessed Morning to all of us! and good to those haven't slept.

I was going through the daily chart and from my explanation in my last post which gave a caution that the trend is weakening becoz none of our yesterday hit tgt2 and 3 before reversing. and that is a warning that we might be getting to the bottom of the prevailing trend. and won't want anyone of use to be caught in the middle. Time will tell if this is true and this might be another theorem for our rules.

last Nite, the pairs on my watch list are AUSD and NZDUSD because they gave a bullish hammer formation after a long bearish candle, I don't joke with such formation, that is wot price action has taught me, and most importantly, the hammer forming contemporary bullish outside vertical bar and regular bullish outside vertical bar.

am looking at long for both currencies pair. if u pull a fib from the swing hing and low of the two currencies, we should expect a pull back within 38.2-78.6 fib region for trend continuation.

I will give more analysis in another 10mins.

I hope am not confusing the house but i think its worthy to note anyway, even if its not understood now, i think when the analysis work-out, then it can be understood.

I might be wrong really but this is just my view for long