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Powerful Fib Based System - by DAZfx

  • #1,301
  • Dec 22, 2008 10:26pm Dec 22, 2008 10:26pm
Quoting jamesdarren
I can see a trade developing on the EURCHF pair (1hr). The daily candles show bearish signs (lower highs and lower lows), plus bearish hidden divergence on the hourly chart all hint on price heading south.

Right now, the hourly candle is in the confirmation phase, so I will make an entry when the next (entry) candle tests the 5sma. Hopefully, the targets will be FE 50 or FE 61.8 depending on how small the S/L is. If the entry is too far from the retrace point, then the trade won't be executed.

Attachment

i'm considering taking this trade, but seriously low trading volume at the moment makes me think twice.
  • #1,302
  • Dec 23, 2008 4:51am Dec 23, 2008 4:51am
Quote
1hr and 4hr. Anything lower than 1hr reduces the effectiveness of this system.

I don't know, that is just from my experience.

the system works very well and perfectly well if u understand how to pick the right wave, no system is without discretion and to me, this system doesnt require so much discretion, all u need to do is pick the right wave.


the major challenges ppl have with the system is trading the retracement from the daily time frame, but with consistent trading the method, the secret of trading that effectively will be discovered.

the system works well and will try to post trades when am free to. jamesdarren, nice job u doing, keep posting, maybe it will attract traders again.


For me, am an avid daz trader, i am trading it as usual!

Merry xmas
  • #1,303
  • Dec 23, 2008 5:02am Dec 23, 2008 5:02am
Quote
1hr and 4hr. Anything lower than 1hr reduces the effectiveness of this system.

I don't know, that is just from my experience.

Like i said earlier, trading a particular system over a long period of time will give certain edge as u will learn great deal from it and as well see access to unravel some mistery which leads to unlimited success.


Look at my UJ 15mins trade, that is only when i take daz trades on lower time frame. those criteria must be fufilled, hence no 15mins trade and u will be amzed that u get it right 9/10 times.


I trade this method with just 6-7 pairs, i wanted to be more effective with it and moreso, when trading with daz, we looked at 6 pairs consistently.


Maybe one day, daz will surface and continue with his thread.
Happy trading
  • #1,304
  • Dec 23, 2008 2:22pm Dec 23, 2008 2:22pm
Quoting jamesdarren
I am in a trade atm.

EURGBP (1hr)
Possible -> 1 : 6.7 (Risk:Reward) ratio.

Attachment

This trade went as predicted, but sadly my broker stop hunted. I placed the STOP @ 0.9383 (inc. spread) and on the charts price only retraced to 0.9386 and yet my stop was taken out. As you can see, price then went on to hit my Target of 0.9475 & also reached the second target of 0.9497. Luckily, I closed half my position at 0.9450 since it was above my target 1:1.5 RR return.

Attached Image (click to enlarge)
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  • #1,305
  • Dec 23, 2008 4:30pm Dec 23, 2008 4:30pm
Quoting jamesdarren
I can see a trade developing on the EURCHF pair (1hr). The daily candles show bearish signs (lower highs and lower lows), plus bearish hidden divergence on the hourly chart all hint on price heading south.

Right now, the hourly candle is in the confirmation phase, so I will make an entry when the next (entry) candle tests the 5sma. Hopefully, the targets will be FE 50 or FE 61.8 depending on how small the S/L is. If the entry is too far from the retrace point, then the trade won't be executed.

Attachment
The EURCHF trade was taken off the radar when the confirmation candle was bullish, but after the London open and some added volatility, the trade opened up. The reason why I chose a different FE level for my target was because of the need for the R/R to be 1:1.5 or better. As Daz said, all these FE levels are significant (50.0, 61.8, 78.6 & 100.0).

Attached Image (click to enlarge)
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  • #1,306
  • Dec 23, 2008 7:06pm Dec 23, 2008 7:06pm
Quoting jamesdarren
The EURCHF trade was taken off the radar when the confirmation candle was bullish, but after the London open and some added volatility, the trade opened up. The reason why I chose a different FE level for my target was because of the need for the R/R to be 1:1.5 or better. As Daz said, all these FE levels are significant (50.0, 61.8, 78.6 & 100.0).

Great to see someone trying to revive this thread. I must say, I have been away from this forum for a long time now. Good to see this thread is still alive. Here is a trade that I took earlier today (12/23/08).

T/F: 1hour Pair: EUR/USD

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  • #1,307
  • Dec 24, 2008 1:30am Dec 24, 2008 1:30am
Quote
Great to see someone trying to revive this thread. I must say, I have been away from this forum for a long time now. Good to see this thread is still alive. Here is a trade that I took earlier today (12/23/08).

T/F: 1hour Pair: EUR/USD

Nice one mate, i know u trade this as well, so u too shd be posting your trades.
  • #1,308
  • Dec 29, 2008 10:56pm Dec 29, 2008 10:56pm
  •  pipsfx
  • | Joined Nov 2008 | Status: Wanted to do well as others too. | 11 Posts
I seems like a valid setup on this system.30.12.2008 few hours before london open.

Bye.
  • #1,309
  • Jan 1, 2009 6:18pm Jan 1, 2009 6:18pm
Happy new year all,

once in a while, i read daz post to refresh and i found this, it might help so much in trading the method


Hi David,

Its 12:33am here in the UK, but I will try my best to answer your questions.

1) The ideal setup is when the levels are touched to the pip, or when they are tested (candle close inside the levels). Then you have the setups where the candle is a few pips short of the levels. If you keep your AB waves short (4-10 candles) by moving to the appropriate TFs, you will be surprised at how often price respects these levels, especially when its moving with the longer term trend. Price could go beyond 78.6, but it should close below the level.

2) Yes, the hook up/down should happen either in the Confirmation Candle or the Entry Candle.

3) Looking back at my initial post, I can see I haven't made it very clear. Its Target 3.

4) When I first came up with this strategy, I moved stop to b/e upon hitting target 1. The problem with that is price will hit my entry point and continue moving in my direction taking out the other targets. This happens much frequently than price reversing at target 1.

5) 15/20 winning trades. 3/20 hit stop. 2/20 hit stop after hitting Target 1. All based on trades taken on the hourly time frame and mostly following the rules.

As you quite nicely said, this is just a ballpark idea, I don't want to mislead anyone.

Having said all this, the Entry, Exit rules are what I follow (My emotions do get the better of me sometimes) and not a requirement for this system to work effectively. I am sure there are better entry/exit strategies out there.

I hope I have answered your questions to your satisfaction.

-DAZ-
  • #1,310
  • Jan 1, 2009 9:10pm Jan 1, 2009 9:10pm
Quoting Naijafx
Happy new year all,

once in a while, i read daz post to refresh and i found this, it might help so much in trading the method


[b]Hi David,

Its 12:33am here in the UK, but I will try my best to answer your questions.

1) The ideal setup is when the levels are touched to the pip, or when they are tested (candle close inside the levels). Then you have the setups where the candle is a few pips short of the levels. If you keep your AB waves short (4-10 candles) by moving to the appropriate TFs, you will be surprised at how often price respects...
Yes, a very insightful post by Daz. I hope 2009 brings more success to everyone trading this system and traders in general.
  • #1,311
  • Edited 3:31pm Jan 2, 2009 4:24am | Edited 3:31pm
Took ausd long


Confluence of reasons

1. Daily is gradually trending up
2. 78.6 fib retracement
3. change in polarity

am sorry, couldnt post chart


Was a winner, 105pips secured
  • #1,312
  • Jan 2, 2009 8:26pm Jan 2, 2009 8:26pm
Quoting Naijafx
Took ausd long


Confluence of reasons

1. Daily is gradually trending up
2. 78.6 fib retracement
3. change in polarity

am sorry, couldnt post chart


Was a winner, 105pips secured
Excellent trade Mike!! You are one of the true daz traders. I didn't take the AUDUSD trade, mainly because I wasn't monitoring that pair, but I did open my 2009 account today with a winner. Will post the it now.
  • #1,313
  • Jan 2, 2009 9:07pm Jan 2, 2009 9:07pm
The trade I took was on the EURJPY pair (1Hr). Like Mike, I will try and justify my trade. Since the daily timeframe shows a bullish trend, I was looking for longs only. The pinbar on the previous daily candle suggests that there is still room for a bull run.
Attached Image (click to enlarge)
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Incidentally, I found out that just on the previous trading day there was a long setup. This is what daz uses to confirm a setup when in a retracement phase on the daily timeframe (counter-trend trades). Hmm, not sure if I explained that clearly. lol
Attached Image


The trade itself. Self explanatory.
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(Entry made upon stoch crossing up as it didn't do that in the confirmation candle, but the daz rules allow us to make entries in this manner provided the other criteria are met).
  • #1,314
  • Jan 3, 2009 4:54am Jan 3, 2009 4:54am
Hello Naijafx,

Can I ask what you mean by 'change in polarity?'

By the way, do you know what happened to Daz - why he vanished so abruptly?
All flesh is as grass
  • #1,315
  • Jan 3, 2009 5:48am Jan 3, 2009 5:48am
Quoting Dazfx
I have 3 strategies.

ABCD
Frankfurt/London Breakout
EURUSD AntiHedge (by Jacko)
I wish Dazfx will come around to share his Frankfurt/London Breakout strategy
  • #1,316
  • Jan 3, 2009 6:09pm Jan 3, 2009 6:09pm
Quote
Hello Naijafx,

Can I ask what you mean by 'change in polarity?'

By the way, do you know what happened to Daz - why he vanished so abruptly?

change in polarity occurs when there is a switch between support and resistance. that is prior support acting as resistance and vice versa.

daz left for personal reasons
  • #1,317
  • Jan 3, 2009 6:33pm Jan 3, 2009 6:33pm
Quoting Naijafx

daz left for personal reasons
I hope Daz is doing well which I am sure he is

I learn a lot from this thread in understanding price movement.

Thank You Daz.

Also to Naijafx for all the efforts made towards a greater understanding of this thread, Thank You.
  • #1,318
  • Jan 4, 2009 4:01am Jan 4, 2009 4:01am
[change in polarity occurs when there is a switch between support and resistance. that is prior support acting as resistance and vice versa]


Thanks for the explanation. Taking S/R into account is a very useful addition to this approach. I don't think Daz mentioned it much, but it's obviously worth looking out for.
All flesh is as grass
  • #1,319
  • Edited 7:36am Jan 4, 2009 7:25am | Edited 7:36am
Here is an example in change in polarity, my favourite in trading daz, I place Pending Order 4pips above the resistance and this trade gave 105 pips
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  • #1,320
  • Jan 4, 2009 5:57pm Jan 4, 2009 5:57pm
Hello all.

I have read this entire thread and have begun to read the ABCD 1234 thread as well.

I trade a multitude of instruments, searching for very specific chart patterns. The chart patterns frequently coincide with the Daz system. So, it seems that, you can enter a long, say, on the Eur/USD at nearly the same price and time that I do for different reasons. I thought you might find that interesting.

I believe that the daz system is a trend following system and as long as an instrument is trending, you will experience a high degree of success trading it suing the daz fibo system.

My system works on currencies, I would like to see how well the daz system works on other instruments. I know this isn’t a forum for other instruments, but I have attached a 360 min chart of Feb. crude oil which is forming the daz pattern as I write this.

It is above the 61.8% retracement and waiting for the stoch to cross and a bearish candle to form. You guys are infinitely more experienced than I at these and would like greatly appreciate your input

Thanks in advance and a healthy and prosperous New Year to all.
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