Does this look more like what you would pull?
Attached Image (click to enlarge)
Indicator Free Trading - Skunny
- #5,530
- Jan 18, 2010 12:16pm Jan 18, 2010 12:16pm
when in doubt i look to see how price is reacting to the fib in the past.. did it get respect on the dowstroke as well as the uptick.
Correct. Move number one. simple clean and profitable. you would have been done for the day easily. If it didnt yield the amount of cash you are looking for... have patience. It is more important to master a simple trade then to master the whole market.
That little trade... if repeated... will put you into 8 figures before you know it.
TK.
2. There were two bodies that respected the 61.8. Do you consider that as confirmation that your fib is placed correctly or are you only looking for respect from the wicks?
3. How would you trade this particular setup? Do you wait for the close of the candle that bounced off the 38.2? Where would you put your SL?
4. I'd be happy with 4 figures at this point.
1. As you can see in this chart, I was able to anchor the 100 line to a wick in the down move. Would you consider that "respect on the downstroke" or was that just luck?
2. There were two bodies that respected the 61.8. Do you consider that as confirmation that your fib is placed correctly or are you only looking for respect from the wicks?
3. How would you trade this particular setup? Do you wait for the close of the candle that bounced off the 38.2? Where would you put your SL?
4. I'd be happy with 4 figures at this point.
there is no respect ( i am intersted in) on the downstroke as far as I am concerned. I can candle or body depending on my mood... wicks are easier to start with and you enver need to go farther.
If you ahd used the 61.8 property... take a break of the signal line... if you had pulled back to support where your 100 is anchored... then.. taken the upbreak up the candle that showed respect on the 61.8.
If you feel the need for a tight sl..(eventhough you won 't lose) right under the 61.8 you will get stopped here and there but that doesnt mean you will lose. traditionally to not incur any losses below or at the 0/100 line.
TK.
- #5,536
- Jan 18, 2010 2:19pm Jan 18, 2010 2:19pm
- Joined Jul 2009 | Status: symbol | 1,549 Posts
Keep smiling
- #5,539
- Jan 18, 2010 3:24pm Jan 18, 2010 3:24pm
- Joined Jul 2009 | Status: symbol | 1,549 Posts
I think you picked the trickiest currency pair (GBPJPY) with a view to current price action, to illustrate Thoms methods at the moment. I have pulled the below chart looking for shorts, easy for me in hindsight.
Previous to this move I would have been looking for an up move which was cancelled when my 61.8 was broke. By the time I turned my fib around to look short I probably would have missed this. By missed I mean the trade between 0 and 138.2, or a decent portion of that, maybe even 2 cracks of the whip. But this is a bad example and not easy to explain.
Overall, I think we will be better trading this pair when we can look long.
MD.
Previous to this move I would have been looking for an up move which was cancelled when my 61.8 was broke. By the time I turned my fib around to look short I probably would have missed this. By missed I mean the trade between 0 and 138.2, or a decent portion of that, maybe even 2 cracks of the whip. But this is a bad example and not easy to explain.
Overall, I think we will be better trading this pair when we can look long.
MD.
Keep smiling
- #5,540
- Edited 4:05pm Jan 18, 2010 3:45pm | Edited 4:05pm
- Joined Jul 2009 | Status: symbol | 1,549 Posts
I looked at AUD last night and saw with my own eyes that price had retraced the yellow highlighted up move by more than 61.8%, I measured it and I was right so I pulled my fib looking for shorts, from the high, back and down (look at the dotted lines). 2 wicks lined up perfectly falling off the 61.8 then the 50 in that order.
Price had already broke the 0 (signal line, is that right Thom?) once and pulled back, even better I'd had my path cleared for me and I don't mean yellow snow either BarTstop. Just before I called it a night it broke again so I took the short, winner, thanks very much.
For AUD it's probably best looking for longs but last night I thinked it got dragged down in sympathy with the EUR, the fib setup nicely as well and it came off. Lovely jubbly.
P.S I would probably leave this fib in place until 1. We crack down through the 138 low, or 2. the 61.8 gets broken at which point I would turn the fib around.
MD.
Keep smiling