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
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