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Indicator Free Trading - Skunny

  • #5,141
  • Edited 1:03pm Jan 7, 2010 1:01pm | Edited 1:03pm
Quoting FX Compass
Good Morning Guys, from sunny Queensland.

Edkilp, placement of the Fib across the previous days completed high/low nails down two things.

1. No misinterpretation of where the Fib should be placed by the trader and
2. It spans the previous days high/low - in themselves support and resistance levels. Therefore you know you have a correctly placed fib and now you just watch how price reacts around the lines.

There are many options you have to trade fibs from one level to another, and if you read some more earlier post, you will see what they...
Hi there. I've read most if not all of your posts. Lots of hand-written notes too! I was interested in the fib levels you have on your charts, as I seem to remember you saying that you took trades on the breaks of the 23.6 and the 7X.X? Can't remember, but I thought it was an unconventional level in the 70's. I also notice that most do not use all the levels like you do. Your method seems to be suited to what I'm able to grasp here so far. Several methods discussed, but yours kinda clicked a little louder than the others. Do you also put a monthly fib on there, or you have just one fib? I've been waitin for you to get here so I could bombard you! Thanks

Also, do you draw your fibs in the same direction, regardless of weather it's bullish or bearish? 0 on top or bottom?

ed
  • #5,142
  • Jan 7, 2010 1:06pm Jan 7, 2010 1:06pm
Quoting edkilp
That's it.....rub it in!

While I'm thinkin about it, would you post a recent chart so I can get a look at your fib setup? Not a specific trade, I just wanna see what your levels are. I put the monthly on there with the daily, and in a few instances you were correct. The price bounced off the longer fib instead of the shorter one. That's good to know. I just wanna see how many fibs you have on your charts. Thanks!!

ed
I like to use the 15 and 30 minute charts to view the price action in a little more detail. As you can see, I pull my fibs from the high/low and then I usually have to cheat them a little to get everything to line up just right. Sometimes you can find a candle thats not the high or low but seems to make the fib "work". You can also see in these charts that price sometimes respects the Monthly fib instead of the hourly. Also, I use IBFX. You will see slight differences between brokers so your levels might not match mine exactly.

One more thing, if you zoom in, you'll see the wicks don't match up exactly to the pip with the fib lines. I would say there is a 2 -3 pip "zone" on either side of the fib line that the wick needs to hit in order for it to be valid. As long as it looks like it hits the line on the 30 minute you'll probably be ok.

Bartstop
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurjpy 15m.gif Size: 20 KB
Click to Enlarge Name: gbpjpy 15m.gif Size: 22 KB
Click to Enlarge Name: gbpusd 30m.gif Size: 22 KB
  • #5,143
  • Jan 7, 2010 1:09pm Jan 7, 2010 1:09pm
thanks buddy! I use IBFX too.

ed
  • #5,144
  • Jan 7, 2010 1:14pm Jan 7, 2010 1:14pm
Quoting edkilp
Hi there. I've read most if not all of your posts. Lots of hand-written notes too! I was interested in the fib levels you have on your charts, as I seem to remember you saying that you took trades on the breaks of the 23.6 and the 7X.X? Can't remember, but I thought it was an unconventional level in the 70's. I also notice that most do not use all the levels like you do. Your method seems to be suited to what I'm able to grasp here so far. Several methods discussed, but yours kinda clicked a little louder than the others. Do you also put a monthly...
I tend to Fib the monthly only for the bigger picture, but I trade the 30M using the previous closed daily candle Fib only.

Fibs can only be placed correctly in one direction - with the 0 Line at the point in which the wave is travelling.

In other words, the 0 Line at the lowest point in the downtrend and highest point in the uptrend.

A fib is used to measure two things, retracement of the wave you are measuring and the likely extension point it will reach following retracement.
It is inaccurate if fitted upside down.
  • #5,145
  • Jan 7, 2010 1:19pm Jan 7, 2010 1:19pm
Quoting bartstop
I like to use the 15 and 30 minute charts to view the price action in a little more detail. As you can see, I pull my fibs from the high/low and then I usually have to cheat them a little to get everything to line up just right. Sometimes you can find a candle thats not the high or low but seems to make the fib "work". You can also see in these charts that price sometimes respects the Monthly fib instead of the hourly. Also, I use IBFX. You will see slight differences between brokers so your levels might not match mine exactly.

One more thing,...
Hi Bartstop,

you will find the shorter the timeframe, the less price respects the Fib lines. Nothing unusual, just lots more market noise going on.

Move upto the 30M and the higher you go, and you'll see much more accuracy.
  • #5,146
  • Jan 7, 2010 1:25pm Jan 7, 2010 1:25pm
Quoting FX Compass
I tend to Fib the monthly only for the bigger picture, but I trade the 30M using the previous closed daily candle Fib only.

Fibs can only be placed correctly in one direction - with the 0 Line at the point in which the wave is travelling.

In other words, the 0 Line at the lowest point in the downtrend and highest point in the uptrend.

A fib is used to measure two things, retracement of the wave you are measuring and the likely extension point it will reach following retracement.
It is inaccurate if fitted upside down.
I understand that. Makes sense to me. What about your inner fib levels? Can you tell me what they are? Then I can load this up in VHands and have a ball! Thanks!!

ed
  • #5,147
  • Jan 7, 2010 1:34pm Jan 7, 2010 1:34pm
Quoting edkilp
I understand that. Makes sense to me. What about your inner fib levels? Can you tell me what they are? Then I can load this up in VHands and have a ball! Thanks!!

ed
Here you go Edkilp,

Each inner Fib level, is a level of wave retracement.

The way price reacts at these levels, tells the story as to what it will do next.
Attached Image (click to enlarge)
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  • #5,148
  • Jan 7, 2010 1:37pm Jan 7, 2010 1:37pm
Thank you...I'm gonna set it up right now and see if I can make heads or tails of it!

ed
  • #5,149
  • Jan 7, 2010 2:00pm Jan 7, 2010 2:00pm
One more from the brain-dead guy...How do you do the 200 and the 261 on the negative side? Thanks

ed
  • #5,150
  • Jan 7, 2010 2:18pm Jan 7, 2010 2:18pm
...drink less Cointreau old boy.

I'm going to be a bit sobering now and boring but it needs saying.

1. I am an experienced trader but these fibs are a new experience to me of which I am still testing as to their profitability.

2. I'm sure you new guys have heard this before but this is not the holy grail. Don't come to this thread expecting to walk away with a pot of gold.

3. Use sensible money management, rr, stop losses etc. There are no guaranteed winners in anything I have seen over the last 5 years.

4. Personally I think a degree of fundamental and economic understanding is a benefit to any kind of trading.

5. This can be a very confusing thread, there are various styles hidden within it, choose one and try to learn it (Edkilp, the answers you need are already here over the last 10 or 20 pages).

5. Do not eat yellow snow!

Sorry guys I could go on but I'm just trying to manage expectations, hate to see you all disappointed.

Ed, thanks for sorting out the fib properties thing for me. You are now chief fib properties technician.

MD.
Keep smiling
  • #5,151
  • Jan 7, 2010 2:21pm Jan 7, 2010 2:21pm
Quoting Misterdaz
...drink less Cointreau old boy.

I'm going to be a bit sobering now and boring but it needs saying.

1. I am an experienced trader but these fibs are a new experience to me of which I am still testing as to their profitability.

2. I'm sure you new guys have heard this before but this is not the holy grail. Don't come to this thread expecting to walk away with a pot of gold.

3. Use sensible money management, rr, stop losses etc. There are no guaranteed winners in anything I have seen over the last 5 years.

4. Personally I think a degree...
Uh oh. You're not supposed to eat the yellow snow?
  • #5,152
  • Edited 2:46pm Jan 7, 2010 2:21pm | Edited 2:46pm
This might be a good time to make sure we all have these custom fib levels typed in correctly, as far as decimals and negative numbers and all that. Obviously, a fib level isn't gonna be right if the levels are incorrectly typed. If i'm not way off base, mine are as follows:

From 0 up:

0 = 0.0
23.6 = 0.236
38.2 = 0.382
50 - 0.5
61.8 = 0.618
78.6 = 0.786
100 = 1
138.2 = 1.382
161.8 = 1.618
200 = 2
261.2 = 2.612

Below the 0:

127 = -0.27
138.2 = -0.382
161.8 = -0.618
200 = -1.2
261.2 = -1.612

ed

that should do it
  • #5,153
  • Jan 7, 2010 2:27pm Jan 7, 2010 2:27pm
BarTstop. It's ok for electicians to eat it.

Ed.

Attached Image


MD.
Keep smiling
  • #5,154
  • Jan 7, 2010 2:34pm Jan 7, 2010 2:34pm
Does that mean my -200 is wrong? Should just be -2, yeah?
  • #5,155
  • Jan 7, 2010 2:36pm Jan 7, 2010 2:36pm
Quoting Misterdaz
BarTstop. It's ok for electicians to eat it.

Ed.

Attachment

MD.
Have I cocked that fib up?
Keep smiling
  • #5,156
  • Jan 7, 2010 2:38pm Jan 7, 2010 2:38pm
To be clear . . .

Fib golden section (GS) is 1.618033989 reciprocal of this is 0.618033989 (approx 61.8%) take this away from 1, so 1 - 0.618033989 = 0.3819660113 (approx 38.2%)

This is where we get our "standard" Fib levels as used originally in this thread.

- 0.382
0.0
0.382
0.5
0.618
1.0
1.382

You can add a 50% in there if you like . . . I have, its red.
20 pips a day isn't too much to ask . . .
  • #5,157
  • Jan 7, 2010 2:40pm Jan 7, 2010 2:40pm
Quoting Misterdaz
Have I cocked that fib up?
I'm lookin at the chart FX Compass put up, and the 200 and the 261.2 look like they're a lot closer to the 161.8 than what I have here.
Attached Image (click to enlarge)
Click to Enlarge Name: fibs.gif Size: 14 KB
  • #5,158
  • Jan 7, 2010 2:41pm Jan 7, 2010 2:41pm
If -138.2 equates to -0.382 then we must subtract 100 then move the decimal 2 places left so -261.2 must be -1.612 so you were right in the first place Ed. Compass??

I'm off to eat more yellow snow.

MD.
Keep smiling
  • #5,159
  • Jan 7, 2010 2:45pm Jan 7, 2010 2:45pm
To be honest, I haven't used any levels beyond the 138's....

MD.
Keep smiling
  • #5,160
  • Jan 7, 2010 2:48pm Jan 7, 2010 2:48pm
Quoting Misterdaz
To be honest, I haven't used any levels beyond the 138's....

MD.
I think I got it now. I corrected the original post where all this crap started! Now that I have 18 lines on my chart....what do I do with them??? I'll get out of that coal mine somehow!

ed
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