Simple & Consistent Fibbing Method

Taking short at 1.5241. This was our awaited breach level and is also a swing low.

All shorts have been closed. Not liking 1.5200 support, lets see what happens at 1.5255/60 resistance.

The GU is in a channel that has to be broken for the pound to travel lower than 65. We have MACD divergence on the 1h. :nerd:

http://img138.imageshack.us/img138/1808/cmcapture1x.jpg

Good chart aswilled!

Good Morning Traders! We have had another good trading week. Today we see where yesterday's & Wednesday's targets were achieved and our ABCD pattern completed giving opportunity for us to enter LONG. As usual, we will use tomorrow to post analysis for the week ahead. Have a great weekend and see you next week.

Always look for setups that support the position you take! Follow the rules!

Lost you for a while, back to watching now.

Great to have you back Bankshot! Getting some rest. Will only be on Mon,Tues, Thursdays! Occassionally the other days.

Have a good weekend!

Now look at this...

I have nothing to do with this site, yet it looks VERY MUCH LIKE, what I started with here...

http://www.gufx.info/showthread.php?t=123949

Noo, he put the comma in the wrong place.

Funny Bankshot! Much has been done with this thread and material to protect as per the original intention, so lets see...

I would like to comment that the chatroom is a great addition to this thread. It is like a classroom where you can ask questions, give opinions and get feedback and most of all LEARN. When the market stalls you can even make new friends and it does stray off topic a bit but when the move starts there are many eyes to recognize and point it out. Keep up the good work, we appreciate it. I would encourage anyone following this thread to check it out noting that it is most active from 3 am till 11 am EST. Other times it is pretty much dead as this system is designed for 3-11 trading.

Good Morning All,

Before we begin our analysis going into next week, let us review an important and typical market behavior.

When Daily or Weekly Targets are achieved the market tends to return to the support or resistance of the swing. So if bull targets were achieved, we expect the market to return to support(19.1%) and if bear targets were achieved, we expect the market to return to resistance(80.9%).

How do we trade with this in mind?

1. When the targets are achieved, adjust the high or low of the fib to the new high or low. This will allow us to properly identify the targeted area
2. Look for setups in the direction of the targeted area (according to the rules of our method)
3. Exit (with confirmation) once the target is hit, as reversal or strong pullback is natural here.

Let us look at last week and how this was applicable...

Fibbing the High to Low of March 8-12 we find the BULL and BEAR targets of March 15-19.

http://img100.imageshack.us/img100/7871/img1hy.jpg

The projected BULL targets are achieved:

http://img709.imageshack.us/img709/1264/img2mj.jpg

The achieved Bull targets have now created a new high, so we adjust the high (100%) on our fib to the new high, thereby finding our targeted area, which in this case is the 19.1% since Bull targets were just achieved.

http://img205.imageshack.us/img205/4171/img3l.jpg

Notice how the market ripped through every level and stalls just above support at the 19.1%?

Always pay attention to this important behavior. It will influence your entries, exits and how long you hold your trades.

Good Morning Earth2Pip,

I am very glad to hear your feedback. Your contributions to this thread/chat have made a tremendous difference. You all keep it up!

On Friday we saw the markets testing the low of week and we are now sitting just above support at 1.4970 and the long term trend line. The support of the entire up move (from 1.5380 to 1.4780) is also just below at 1.4894.

http://img96.imageshack.us/img96/1921/week1o.jpg

We just completed an ABCD pattern on the 15M.

http://img248.imageshack.us/img248/517/week2.jpg