1H Fib Trades

This is a method I have been using for nearly 5 years now that involves Fibs, S/R and Trendlines. It has produced amazing results and wins nearly 60% of the time. The average r/r is 2:1 but sometimes it will be 3:1 and even 4:1. I never place a trade that is less than 2:1.

Currency Pairs: Any
TF: 1H
Indicators: Fibs, S/R and Trendlines
SL and TP will be discussed later in the thread

You need to set your fibs levels where you have the 382, 50, 618, 786 and 87 levels.

Before you enter any trade you need to mark 4 levels of s/r. You will be looking to enter the trade on the 618 retracement level. You will place your SL at the 87 level.

You will then need to run your fib extension tool and place your TP on the 1st or 2nd extension. Make sure your r/r is at least 2:1 before entering the trade. Also, make sure there isn't a s/r line near your TP level. If so then drop your TP level by 10 pips under the S/R for a Buy and above for a Sell.

You will want to take trades in the direction of the trend. I like to go to the Daily candle and trade in the direction of it.

To make a trade stonger you can take trades where the 618, s/r and trendline all run together. If you take trades when only these meet then you will increase your chances to 80% of a successful trade.

Now you are probably wondering where the 382 and 50 level comes in. In this case you can take trades from these areas. I you find price bouncing off these areas you can wait for a candle formation to occur and place your entry at the open of the next candle. Place you SL at the low of of the candle formation as long as it is less than 50 pips. You TP will be Extension 2 in this case. I will post examples here soon.

The attached picture shows a trade I took yesterday on the EUR/USD.
A) is my entry at the 618 at 1.3923. B) is my SL at the 87 fib with a price of 1.3863. C) is my TP target of the 2nd Fib extension. My price is 10 pips below D which is a S/R level. My TP price is 1.4190. The original Fib extension is actually 1.4194. I always take my profit 10 pips below a s/r when it is that close to the extension.

So my SL is 60 pips and my TP is 267 pips. So my r/r is well over 4:1 on this trade.

Look at Post #20 and #21 for additional fib rules for strength and weakness

Fibs are very effective,,,,thx,,,,Looking forward to see some of your setups

so where would you put your swing high and low on the gpb/usd,,,Looks like a retracement is deveolping,,,low...164.61---hi---165.55,,??

I ran my fibs from the 1.6316 to 1.6549. It had a retrace to the 50% fib. The very next candle show a engulfing bullish candle. So that's where I entered my trade and currently up 30 pips. Although I do not like these types of trades as well as I do off the 618 level.

I see,,,You got into that trade earlier,,,Looks like a double top at 165.55,,,Although still a strong uptrend,,,,I am going on the last wave and have a buy liimt at 165.09,,,thx

yes exactly....I am not really a big fan of these smaller swings but I still take them.

Makes sense,,,,,,,I use to play fibs on the 5 min charts ,,,To choppy I really like 1 hr or 4 hr,,,thx

Yes agree...5m is too choppy for fibs. 1H is good....Daily is even better if you can handle the large SL

Hi Ufgators
Thanks for starting the thread.Looking forward to learn from your thread.
I will be following your thread.
Bhupinder

Your ROI,,,Looks very impressive,,,,So I will follow your thread and see how you put your trades together,,,,I am on the west coast time zone so i miss part of the london session,,,,,Thanks again!

Hey guys...I am trying to add pics for you but having difficulty...will try to have them up soon. Keeps saying my file is too large. Any suggestions?

Not sure,,,

So ,,,On the your gbp/usd trade do you have the 1st tp @ 169.90,,,Also what are your contingency MM rules once you get into a profit,,,,thx!

okay guys I got the pics problem handled and have added it to my first post.

I want add to my first post. To be able to trade this successfully you need to know your ABCD's and how to correctly identify them. If you are not familiar with them then you need to before you start trading this type of system. Also, if you are in a trade that is more than 70 to 80 pips as a TP target, then you will have smaller ABCD's inside your open trade. In other words, you will have several small retracements so you don't want to move your SL too tight if you decide to adjust it once you are in profit. Look at the example in my first post, there are several ABCD's inside that trade. You can take advantage of these by adding to your position.

im a follower, i've been looking at this system myself for a while now, and i was so surprise i cam across this..... i love to learn more. thankyou so much.

Very interesting, I love using fibs as tool. Seems the market follows these very closely. Thanks for starting the thread, do you only use this at certain times of the market?..

Also noticed your name, as a Gator Fan from central FL that was the first thing that caught my eye......assuming that is what it means.

Troy..

The system is very simple to use as long as you know the basics of the ABCD's. I wanted to post this because I have had so many people ask me about my trading style with fibs. It's nothing new but I have had much success with it. There are several other threads on here that involve fibs that are also very good. If you don't want to take every trade that retraces back to the 618 I have told traders to add the 786 level where you could also enter your trades here. By doing this you will reduce your overall risk on the trade. I personally like the 618 level but everyone is different. Either way the fibs are in my opinion the most accurate way to trade the market.

If you want to increase your win percentage you can take trades that have 2 or more areas of congestion. What I mean by this is if price retraces back to the 618 and there is also s/r line at that level. That would qualify as 2 areas of congestion. If you have s/r and a trendline when the 618 retraces to then you definitely want to get in on that trade. You can do this on any fib level if you have congestion in the same area. If you see this area at a level such as the 382 you may want to wait to enter the market with a candle formation at that level.

Congestion areas:
S/R
Trendlines
Candle formation
Fibs
Overlapping Fibs

Hope this helps and I will post some new examples here soon.

I use this system pretty much any part of the day. I don't use it only during london or US open. When I get a trade setup then I enter because this is not an intraday type of system. But, if it is a small swing you may want to be cautious at times you enter the market. The majority of my fib trades have a target of around 200 pips. However, if you see a trade setup at the end of the US session you may want to wait for a candle formation before you place your entry. It really depends on the trade setup with how I would approach this.

And yes I am a huge Gator fan. I am trying to get my wife to move to Florida but having a hard time convincing her to move that far right now.

Go Gators!!!

Hey guys I wanted to add to the rules of first post because I think you will find this very helpful. It really helps me when I trade this type of strategy since it goes hand in hand with fibs.

When you have a move up or down from the beginning of the trend. Mark the lowest point of the trend with a 0. Then move up to the next level and mark it with a 233 which is just 233 pips from the low. Use all the numbers listed below. All you do is add the amount of pips to the low or high

Fib Levels on price:
0
233
377
610
987
1597

Look at the picture below and you will see what it is suppose to look like. What these areas are for is another area of congestion just like the fib retracement tool, s/r and trendlines. If you have a Fib retracement at or close to one of these area then it is another area of strong congestion. It is best used when you overlap your fib retracement tool. What I mean by this is when you first start out run you fibs from the first move. Leave it on your chart and run your next swing. When you keep doing this you will see fib levels start overlapping others which will make for stronger s/r and an area of your next projected move. Plus if you have these area overlapping the numbers I have stated above, just makes the trade that much stonger.

This is also good because you will find most of the time when a trend get around the 610 or 987 level it will usually start to come back the other direction. What I do at this point is mark up my Daily s/r areas and see if the 610 or 987 level is close to it. If not then look to see if the 1597 area is close to it. This is a good indication that the market may start to reverse. Not always the case but its a good way to manage any current trades you are in or when planning your next trade.

You will see in the 2nd example where price is starting to retrace back after reaching the 610 area. From here we want to see if price continues down and breaks the previous low or bounces back.