I decided to start this thread to keep track of my own trading, to find the consistency that is needed to make success trading.
Trading system:
My system of trading is based on price actions particularly fibo retracements and fibo expansions.
I also use other price actions such as higher lows, lower highs and 123 patterns to help make decisons.
My understanding of fibos are outlined below:
(For simplicity of explanation I use upward motion. For downward motion it's just the opposite.)
If price respect particular retracement level, it must respect it's first expansion which is 61.8% level.
That is, if the price break over 0% level of the retracement.
At lease the price would spike over the 61.8% level and close below.
If the price break over 61.8% level and close above the level, then definitely the price would respect it's 100% level. At least it will spike over and close below the level.
If the price break over 100% level and close above the level, then definitely the price would respect it's 161.8% level. At least it will spike over and close below the level.
Trades:
First option,
I would sell basket or buy basket in accordance with Basket Trading Strategy developed by Trader 101 Julius.
In this case I would only draw fibo retracement/expansion on gbp/jpy chart since the gj is always commands anchor position and the most active. The ups/downs of the basket also follows gj.
(The advantage of basket method is that any spike would be counter balanced by the somewhat hedged pairs. The profit made is on the net bias.
Second advantage is that it's the only way that I've come across that could bring you more than 2,000 pips in a day of trading)
Second option,
Trade 1 or o few ccy pairs.
In this case you have to draw individual fibo retracement/expansions for every ccy pairs.
Actions: (how I do it)
(all in m15 chart)
Firstly I would watch the market and locate retracement.
Then I would draw fibo retracement level and fibo expansion level.
If the price break over 0% of the fibo retracement and close above the level, I would take a trade.
If it doesn't break the 0%, instead it break over 100% level of the retracement, then I would delete all drawings and redraw the fibo retracement/expansion to the opposite direction.
I would close all positions when the price just spike over 61.8% level.
Then I will wait to see whether the price break over and close above 61.8% level.
If it does, I will take another trades.
I would then, close the trade when the price spike over 100% level.
Then I will wait to see whether the price break over and close above 100% level.
If it does, I will take another trades.
I would then, close the trade when the price spike over 161.8% level.
After the price has spiked over 161.8%, I would delete all the fibos drawings.
I would also delete all drawings, if the price break the previous expansion level.
Then I will lookout for retracement again and the cycles above repeat.
*************************************************************************************
1st chart is example of fibo retracement and fibo expansion in action.
2nd chart is my typical trading setup.
Trading system:
My system of trading is based on price actions particularly fibo retracements and fibo expansions.
I also use other price actions such as higher lows, lower highs and 123 patterns to help make decisons.
My understanding of fibos are outlined below:
(For simplicity of explanation I use upward motion. For downward motion it's just the opposite.)
If price respect particular retracement level, it must respect it's first expansion which is 61.8% level.
That is, if the price break over 0% level of the retracement.
At lease the price would spike over the 61.8% level and close below.
If the price break over 61.8% level and close above the level, then definitely the price would respect it's 100% level. At least it will spike over and close below the level.
If the price break over 100% level and close above the level, then definitely the price would respect it's 161.8% level. At least it will spike over and close below the level.
Trades:
First option,
I would sell basket or buy basket in accordance with Basket Trading Strategy developed by Trader 101 Julius.
In this case I would only draw fibo retracement/expansion on gbp/jpy chart since the gj is always commands anchor position and the most active. The ups/downs of the basket also follows gj.
(The advantage of basket method is that any spike would be counter balanced by the somewhat hedged pairs. The profit made is on the net bias.
Second advantage is that it's the only way that I've come across that could bring you more than 2,000 pips in a day of trading)
Second option,
Trade 1 or o few ccy pairs.
In this case you have to draw individual fibo retracement/expansions for every ccy pairs.
Actions: (how I do it)
(all in m15 chart)
Firstly I would watch the market and locate retracement.
Then I would draw fibo retracement level and fibo expansion level.
If the price break over 0% of the fibo retracement and close above the level, I would take a trade.
If it doesn't break the 0%, instead it break over 100% level of the retracement, then I would delete all drawings and redraw the fibo retracement/expansion to the opposite direction.
I would close all positions when the price just spike over 61.8% level.
Then I will wait to see whether the price break over and close above 61.8% level.
If it does, I will take another trades.
I would then, close the trade when the price spike over 100% level.
Then I will wait to see whether the price break over and close above 100% level.
If it does, I will take another trades.
I would then, close the trade when the price spike over 161.8% level.
After the price has spiked over 161.8%, I would delete all the fibos drawings.
I would also delete all drawings, if the price break the previous expansion level.
Then I will lookout for retracement again and the cycles above repeat.
*************************************************************************************
1st chart is example of fibo retracement and fibo expansion in action.
2nd chart is my typical trading setup.
Attached Image(s) (click to enlarge)
-Azzity
