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Fib 4Hour MTF Moving Average

  • #1
  • First Post: Edited Jan 28, 2009 7:57pm Jan 27, 2009 4:45pm | Edited Jan 28, 2009 7:57pm
Hello people, I am starting this because this is the only method that itīs giving me pips and giving me hope, because yes, I have lost a lot, and with this thread i intend to try to help the newbies (like me) the method that is saving my life and my money lately, of course I would like positive ideas and maybe improvements, my native language is spanish, so I apologize if I make mistakes, I have been using this method on a live account for almost 3 months, but I will be posting a demo (for obvious reasons) which are very similar to my live, the system is very mechanical but needs human intervention on making a desition.
The Rules:
-Only Trade the 4H chart
-I only use one indicator – MTF Moving Average (only to have a visual of the current daily trend), the settings are as follow: TimeFrame 1440, MAPeriod 50, Shift 0, Method 1, Price 0
-Find the latest movement that has not been retraced to the 38.2 yet
-Draw a fib on that movement
-We are interested only on the 38.2 and 61.8
-If the market is short, when it starts to retrace you put a pending short on the 38.2 fib line with the SL on the 61.8, plus another pending short on the 61.8, with a 100 pip SL
-Always look at the MTF Moving Average and try to enter only on the same direction, if you enter in opposite, I sugest you use a smaller TP
-I put a trailing stop of 75 pips on the regular pairs and let it run until it closes on SL or the TS, and for the volatile pairs I use 100 pips TS
Ok tha is it, I will illustrate the method with some pics, I hope I made myself clear, feel free to ask, letīs make this something productive NOT DESTRUCTIVE, whoever donnīt like this method, donīt use it. I hope this helps some lost people around, regards and happy trading.
I donīt know why the name of the thread has changed to Fib 4Hour Moving Average, just to clarify, the MTF Moving average is not considered to enter trades, just the Fibs, i have it only to have a visual aid of the current daily trend
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Balance.jpg Size: 167 KB
Click to Enlarge Name: GU.png Size: 30 KB
  • #2
  • Jan 27, 2009 4:54pm Jan 27, 2009 4:54pm
Here is an example of where i should place the pendings
Attached Image (click to enlarge)
Click to Enlarge Name: EU.png Size: 21 KB
  • #3
  • Jan 27, 2009 4:59pm Jan 27, 2009 4:59pm
Another example
Attached Image (click to enlarge)
Click to Enlarge Name: EU previous.png Size: 32 KB
  • #4
  • Jan 27, 2009 5:04pm Jan 27, 2009 5:04pm
Quoting robby2007
-If the market is short, when it starts to retrace you put a pending short on the 38.2 fib line with the SL on the 61.8, plus another pending short on the 61.8, with a 100 pip SL
This portion is a bit confusing. Please clarify?

Thank you and green pips to all.
  • #5
  • Jan 27, 2009 5:06pm Jan 27, 2009 5:06pm
Quoting SmoothTrader
This portion is a bit confusing. Please clarify?

Thank you and green pips to all.
I agree. What is the point of closing 1st order. Just put initial stop 100 pips above/below the 62
  • #6
  • Jan 27, 2009 5:44pm Jan 27, 2009 5:44pm
Hey.

How are you judging the correct placement of the Fibs if you don't draw them until you see a correction to 38.2 level, which is a entry spot?

Also, If you enter at the 38,2 level and you trail stop at 75. Say price moves 95 pips and then reverses so you make 25 pips. Would you consider re-entering with another test of 38.2? you do you just wait for it to go to the 68 level?

Thanks for posting this

Adam
Attached Image (click to enlarge)
Click to Enlarge Name: setup.jpg Size: 121 KB
"Your big opportunity may be right where you are now." Napoleon Hill
  • #7
  • Jan 27, 2009 6:36pm Jan 27, 2009 6:36pm
glad to hear have a simple and profitable system to follow

may i know your moving average line Ema50?
  • #8
  • Jan 27, 2009 6:51pm Jan 27, 2009 6:51pm
Quoting SmoothTrader
This portion is a bit confusing. Please clarify?

Thank you and green pips to all.
I hope this Pic helps, in between these two points there was no retrace yet and the market was going down, so we want to go short on a retrace of that movement, to be specific on the 38.2 or the 61.8, i hope this clarifies
Attached Image (click to enlarge)
Click to Enlarge Name: 1-27-2009 10-36-33 PM.png Size: 31 KB
  • #9
  • Edited 8:14pm Jan 27, 2009 6:54pm | Edited 8:14pm
Quoting TheHefner
Hey.

How are you judging the correct placement of the Fibs if you don't draw them until you see a correction to 38.2 level, which is a entry spot?

Also, If you enter at the 38,2 level and you trail stop at 75. Say price moves 95 pips and then reverses so you make 25 pips. Would you consider re-entering with another test of 38.2? you do you just wait for it to go to the 68 level?

Thanks for posting this

Adam
If you pay attention to your picture, you are drawing your fib from a movement previous to a little retrace, which i am sure retraced to a 61.8 fib line, Draw your fibs in between two points that has no retrace to any fib line, and if the 0 and 100 lines arenīt broken i will consider reentering on a second test of the 38.2
  • #10
  • Jan 27, 2009 6:56pm Jan 27, 2009 6:56pm
Sorry i forgot to post the MTF Moving Average, here you go
Attached File(s)
File Type: mq4 #MTF_MovingAverage.mq4   4 KB | 1,891 downloads
  • #11
  • Jan 27, 2009 8:45pm Jan 27, 2009 8:45pm
Another example
Attached Image (click to enlarge)
Click to Enlarge Name: GJ.jpg Size: 70 KB
  • #12
  • Jan 27, 2009 9:35pm Jan 27, 2009 9:35pm
Quoting robby2007
Another example

This trade appears to be against the direction of the MA?
  • #13
  • Jan 27, 2009 9:51pm Jan 27, 2009 9:51pm
Quoting aelimian
This trade appears to be against the direction of the MA?
It is, but that is the latest movement which was without a retrace, plus it is pretty far away from the MA, plus i never said donīt take the trades against the MA, but if you take them use a smaller TP or TS, of course i am looking to short this currency around 129.30, if it doesnīt turn around before that, right now it is sitting on the 50% from the latest daily down move, so i might be taking my profit if i see it going down and enter short, please i am not sugesting to take this trade i am only saying what i think, trade at your own risk, regards
Robby.
  • #14
  • Jan 27, 2009 10:04pm Jan 27, 2009 10:04pm
This looks brilliant! I just did some back testing and it looks like it will work out very well. But I noticed that some of the pairs don't hit 75 pips before turning back again so the trailing stop wouldn't be hit. It looks like some profit should be taken off of the table before 75 pip trailing stop. Does that sound correct?
  • #15
  • Jan 27, 2009 10:04pm Jan 27, 2009 10:04pm
Quoting robby2007
-If the market is short, when it starts to retrace you put a pending short on the 38.2 fib line with a 100 pip SLthe SL on the 61.8, plus another pending short on the 61.8, with a 100 pip SL
From your first post, I assume that you meant to add the GREEN and delete the RED. Then it makes sense. The way you had it written, a person would enter the trade at the 38.2 fib line and if the market should move to the 61.8 fib line then their SL would have been hit at the same price that their next pending sell order.

If this is correct, I would suggest you edit your 1st post.

Thank you and I appreciate your effort since English is not your native language.
  • #16
  • Jan 27, 2009 10:15pm Jan 27, 2009 10:15pm
Quoting ruthere2
This looks brilliant! I just did some back testing and it looks like it will work out very well. But I noticed that some of the pairs don't hit 75 pips before turning back again so the trailing stop wouldn't be hit. It looks like some profit should be taken off of the table before 75 pip trailing stop. Does that sound correct?
You are right, some of the pairs donīt hit the TS, right now i am doing GU, GJ, EJ, and AU which are very volatile pairs, and on my live i am trading just 0.1, so the best thing to do is trade 0.2 or whatever and take half of the profit at +50, move SL to 0 and then let it run
  • #17
  • Jan 27, 2009 10:19pm Jan 27, 2009 10:19pm
Quoting SmoothTrader
From your first post, I assume that you meant to add the GREEN and delete the RED. Then it makes sense. The way you had it written, a person would enter the trade at the 38.2 fib line and if the market should move to the 61.8 fib line then their SL would have been hit at the same price that their next pending sell order.

If this is correct, I would suggest you edit your 1st post.

Thank you and I appreciate your effort since English is not your native language.
If the market is short, when it starts to retrace you put a pending short on the 38.2 fib line with the SL on the 61.8, plus another pending short on the 61.8, with a 100 pip SL.

i think is very clear, put 2 pending shorts, one on the 38.2 and another on the 61.8, the 38.2 pending should have a SL where the 61.8 is, and the 61.8 should have a 100 pip SL, as i said my english is not very good, so please correct me if i am wrong, maybe i am not realizing of my mistake
  • #18
  • Jan 27, 2009 10:22pm Jan 27, 2009 10:22pm
Quoting robby2007
If the market is short, when it starts to retrace you put a pending short on the 38.2 fib line with the SL on the 61.8, plus another pending short on the 61.8, with a 100 pip SL.

i think is very clear, put 2 pending shorts, one on the 38.2 and another on the 61.8, the 38.2 pending should have a SL where the 61.8 is, and the 61.8 should have a 100 pip SL, as i said my english is not very good, so please correct me if i am wrong, maybe i am not realizing of my mistake
From what you have here, it would make sense to enter ONLY one pending order @ 38.2 with a SL at the 61.8 plus 100 pips.

The way you have it written your original short order would be closed with a SL at the 61.8 and a brand new order would be opened at the exact same price, 61.8 with a SL 100 pips higher.
  • #19
  • Jan 27, 2009 10:38pm Jan 27, 2009 10:38pm
Quoting SmoothTrader
From what you have here, it would make sense to enter ONLY one pending order @ 38.2 with a SL at the 61.8 plus 100 pips.

The way you have it written your original short order would be closed with a SL at the 61.8 and a brand new order would be opened at the exact same price, 61.8 with a SL 100 pips higher.
That is exactly the way i am doing it, i enter at the 38.2, and have my SL on the 61.8, if price continues to the 61.8 and takes out my trade on SL, at that same spot (which is the 61.8) i will sell again with a SL 100 pips away from my second entry (61.8), hope itīs clear
  • #20
  • Jan 27, 2009 10:46pm Jan 27, 2009 10:46pm
Quoting robby2007
That is exactly the way i am doing it, i enter at the 38.2, and have my SL on the 61.8, if price continues to the 61.8 and takes out my trade on SL, at that same spot (which is the 61.8) i will sell again with a SL 100 pips away from my second entry (61.8), hope itīs clear
Now it is clear.

Thank you
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