LOL!! Convict jokes will do just fine in fact, i only shave once a week anyway and never with a razor!
Indicator Free Trading - Skunny
Compass definately told me he redraws his fib everyday regardless of 138 completions as I like Edkilp suggested the 138 completion before re-positioning. Now Compass is one of the good guys so I'm sure he will return at some point and clear matters up.
In any event there is nothing to stop using 138 completions before moving the fib, it means you will wait longer for trades but that will be because the uncompleted fib is on a wider range.
MD.
Imagine reading a book - you are still getting told the same story, regardless of which page you are on. The first Fib if not completed will still complete and the second Fib if placed elsewhere before the first Fib is completed will also complete its journey. If not, you have a reversal and price is still respecting Fib levels in that story, provided :
the fibs are plotted correctly from Low to High and
the fibs are plotted with th 0 Line at the high of the wave and in the direction of the major trend.
Try this exercise to prove the point. Open an hourly chart with a long uptrend (say EURUSD) before this current correction. Now Place your Fib along the smaller waves travelling up the larger trend see how each fib is accurate. Now place the Fib across half the trend from the wave low to a wave high. It is also accurate, but they are just telling the same story at different times. Fibs reamain accurate in differing positions because they are scaled according to wave percentages and the data they are placed across.
In short what Fibonacci discovered was that smaller cycles (in our case waves) still behaved exactly the same as larger cycles. Same retracement levels and same extension levels. The Fibonacci ratio was accurate at all times provided it was applied consistently every time. In our case nothing changes apart from the size of the waves and thus the relative size of the Fib levels they will travel to.
There are many ways you can set take profits from Fibs, and it will depend on what method you are using as to where you want them positioned.
- #5,245
- Jan 9, 2010 1:31pm Jan 9, 2010 1:31pm
- Joined Jul 2009 | Status: symbol | 1,549 Posts
Keep smiling
- #5,246
- Jan 9, 2010 1:57pm Jan 9, 2010 1:57pm
- | Joined Dec 2009 | Status: Trader | 1,171 Posts
Checkz, I was trying to work out when you had a signal to sell cable, the only one I could find is on the chart below which went from the 78.2 to the 50 just before the NFP number which seemed ok to me so I can't fathom when you lost unless you didn't take the trade off in time. If you was brave enough to trade after NFP there was also a long triggered at the 100 long which would have netted you a few pips if you chased the stop up.
Attachment
MD.
- #5,247
- Jan 9, 2010 2:07pm Jan 9, 2010 2:07pm
- | Joined Dec 2009 | Status: Trader | 1,171 Posts
There seems to be a bit of confusion as to whether to re-draw a Fib after the targets are hit or at the end of each day. The fact is it doesn't really matter, both will work. Commonly referred to as Fib clusters.
Imagine reading a book - you are still getting told the same story, regardless of which page you are on. The first Fib if not completed will still complete and the second Fib if placed elsewhere before the first Fib is completed will also complete its journey. If not, you have a reversal and price is still respecting Fib levels in that...
I always wondered how fib clusters work. Skunny talked a little about them but not much. This info IMO is Priceless!!! Another job well done FxCompass!!!!
If you don't mind me asking how did you demystify skunnys teachings and come up with a way that worked for you! - #5,248
- Edited 2:53pm Jan 9, 2010 2:48pm | Edited 2:53pm
- | Joined Dec 2009 | Status: Trader | 1,171 Posts
- #5,249
- Jan 9, 2010 2:56pm Jan 9, 2010 2:56pm
- | Joined Dec 2009 | Status: Trader | 1,171 Posts
Oh yeah I left out the inner fib lines on purpose. Wanted to make sure you and everyone else could see my two candles with fibs drawn on them.
- #5,250
- Jan 9, 2010 3:26pm Jan 9, 2010 3:26pm
- | Joined Dec 2009 | Status: Trader | 1,171 Posts
Have I addressed fib clusters? I don't think so. Lets add that to our vocabulary
A fib cluster is when you have multiple s/r or ext's that end in the same area (within 10 pips or so). The reason for the 10 pips is usually due to the bad data feeds or manipulation of data. We all have to live with bad data so don't anyone whine about it
Fib clusters add substance to the s/r areas...
I always wondered how fib clusters work. Skunny talked a little about them but not much. This info IMO is Priceless!!! Another job well done FxCompass!!!!
