Fibonacci insights

Cable chart shown with MT4 Fib Tool v.'light'

GBPUSD M1 - (fib cluster)up fib


Retrace - price finding support at the 61.8 level, gets rejected at the REJECTION LEVEL -

Price making a new swing low; liquidity becomes available - buyers saying; eh-ah, not so fast, we're not done yet - is that so sellers are saying...

Price making again a new swing - this time to the upside - buyers are getting exhausted - sellers saying: he-he, told you so!

Up-trend-Trend Line Break; W-Top formed - A Trader looking at this chart might say: hmmm... tried to the downside, tried to the upside - well if it isn't going up it's going, right; down.

And so it is - price breaching the 61.8 level and the previous swing low - KISS BACK, uhhhhh, NICE! Whammmm it goes, and Bob's your uncle - Fear setting in, once again buyers saying:

Thank you - our turn now, oh, thanks for the liquidity - fight again - price consolidates...

Higher lows - A Trader looking at this chart might say: hmmm... tried to the downside - false break out - uptrend still in tact - new swing highs...

and UP IT Goes! Fear sets in, this time for the bulls - they need to close and take profit - well

bears are turning bullish too, uhhhh, that looks nice and cheap now, hmmm, yeah, lets join the bid too!!!

And the bid they join jolly well - price making new swing highs - stalling - the bear goes.... *scratch, scratch* on his head, nahhhh, no, should have perhaps stuck to my guns after all, or lets wait and see, we still have defense lines ahead of us, all we need is a new swing high. Dot, dot, dot.

to be continued...


-end of story

Please find attached to post #1 the 'scaled down' version as mentioned and shown in post #102.

Further:

*on a (very) serious note now, for once* I have gone through tons of material in here; you have seen a glimpse of greatness - I really think that I have done my upmost in order to contribute, and, share with you - the World is a better place now (I sincerely hope so; this is/was my contribution).

My best, Trader613

I herewith attach rtri v.2 (real time range indicator v.2) which was coded by sangmane, as well as the, te.mq4 (title edit) - both are EA's; so both of them should be placed in the MT4 'experts' Folder.

(PS: had to remove the 'te.mq4' from post #1 to make room for the Fib Tool v. LIGHT, as one can only upload the maximum of 7 attachments.)

...and really none expected (in return neither); right?

Best.

Hi Trader,

This played out really nice later.


Still learning and try to master the tool...

http://i46.tinypic.com/125t7qg.jpg

'Play/ed/ing', 'tool', 'strategy'; music to my ears, Ingmar, music to my ears...

'Passion', 'endurance', 'Discipline', 'Flexibility', 'humility', 'Joy'.

*Note to self*:

as I was typing out above words and then looking at the finished sentence I couldn't help but notice that, the words: 'endurance' and 'humility' I did not spell starting with a capital letter...

Freudian Psychology would perhaps have you say and suggest that, I lack in those fields, or perhaps are, in a proportional imbalance with the other virtues....

oh!

Lets add these words too then:

'self critical' and 'self evaluating'

My best.

GBPUSD H1 - up fib

GBPUSD H4 - down fib

Great weekend to all!

Trader613

Explore - Find - Trade

explore: trust in your capabilities, knowledge and your instinct that you can do it, that you can explore.

find: make up your own mind - do YOU personally believe that, the market is: bullish, bearish or neutral.

trade: once you have come to your own conclusions - set a trigger - and trade; and only then.

Have a GREAT trading week!

Haha but mate how much of Freudian philosophy do you actually trust?

but:

…no smoke without fire.

Nonetheless, Freudian psychoanalysis is still subject to critical debate and also big controversy.

- In my humble opinion, Traders who are usually critical about all of this psycho mumbo jumbo, are usually people with high self worth (which is good, no, it's excellent!); they certainly don’t need any help in that department. (Neither by Freud, or Dr Brett)

However, it is also those very same people who might, I repeat: might, have a short coming with regards when it comes to being able to look at charts/market being in a state of: an ' empty vessel '. The reason being, that, it’s always them first, and everything else is 'after'.

One can trade like this of course; but it’s like 'swimming in your pyjamas'.

On the other hand, Traders who are ' in need ' of support when it comes to shortfalls in the ' brain department ' , will find it easier, or might find easier, repeat again; might, when it comes to making unbiased and objective trading decisions, nonetheless, subconsciously, and I will go a step further:

miraculously (so it seems at least to the onlooker) they (well, their subconscious being, actually) will manipulate themselves back into track – back to their old habits and self-(destructive) believes.

There are always two sides to the coin (bugger!); yes, Sim?

Haha! Genius mate...

You make perfect sense,, to me anyway... life really is that circular isn't it! I think this is generally an overooked concept, people just want linear, easy black and white options to pick from... same with trading as well as in life.. u agree?

Fibs made simple. These are the other fib levels most charting default fibs leave out.

To use these on MT4, plot the MT4 default fib on any chart.

Right Click on the dotted line.
Click Fibo Properties.
Click Fibo Levels
Click Add
In the Level column, enter the new level, e.g. 0.764.
In the "Description" section, enter the standard descriptor 76.4, then space and enter %$, like this - 76.4 %$
Do this for each level that you wish to show on your fib tool.
Click OK when finished.

This will give you the dollar value for each fib level every time you use your fib default henceforth, per the sample below.

btw, you can use this fib tool on all time frames from 15M up, however it's best to plot one fib on the higher time frame first, e.g. daily, weekly or monthly, then plot the same fib levels again (different colour if you prefer) on a lower time frame, e.g. 15M, 30M, or 1H

If price isn't on a fib, don't trade it, simple.

Assuming you know candles, the waves cycle of market and stay across other things you need to monitor, like the S&P and any co-dependent currency pairs for the one(s) you want to trade, fibs provide a higher degree of reliability for trade entry and exit points.

Co-dependence -

Trade EUR/USD - Must watch (and plot equivalent fibs) on USD/CHF, EUR/CHF, EUR/GBP

Trade GBP/USD - Must watch (and plot fibs) on USD/JPY, EUR/GBP

Trade AUD/USD - Must watch (and plot fibs) on EUR/AUD (and the S&P futures)

Trade NZD/USD - Must watch (and plot fibs) on EUR/NZD (and the S&P futures)

Trade GPY/JPY - Must watch (and plot fibs) on USD/JPY, EUR/GBP, GBP/USD

etc

Hi Trader613,

Firstly, many thanks for your time and effort in sharing knowledge with us.

I have read and re-read your posts several times but alas it really does not make sense to me without understanding the relationship between the levels on the Fib Tool.

I believe Jackdaniel asked for a similar explanation but it would appear that you considered this to be spoon feeding but it really is not.

For those endeavouring to learn how to apply this tool "Upper Level Stop Loss I", for example, simply does not mean anything without an explanation. A description (a title here) is not always an explanation of its function.

Thank you for your time.

Hi ChilliPipper,

Thank you for your comments.

I am thinking of ways of how to best express/explain of how to deal with the vast subject of Fibonacci.

I am attaching a chart, and as per previous post, you can see that there are 3 + 2 price zones - explore the interaction and relation of price within those.

Could you please do this for me:

open a 1 minute (GBPUSD) chart - plot the Fib grid - observe the market for a while (half a year maybe? - Joking.) and get back to this thread with your findings. Is this ok with you?

My Best.

Thanks Trader613,

That is of course what I am doing......just not on 1 minute charts.

I just wanted you to consider why there is little interaction on this thread.

Kind regards

Fibs can stay 'valid' for a 'long time' - I only draw/plot a new Fib if price is extending or projecting more than 38.2% (and reaches/ goes over the 'Renew Fib old INVALID' levels) over the previously established price swing-(Parent Fib).

Please note again: the 7ish, 12 and 20ish per cent extension targets/levels (the ' First Retr. Rejection Level' and the 'Extn. Rejection Level II' of the Fib tool) can prove to be a tough price level to overcome.

Going over some points:

- price retracing shallow, able to make new swing highs/lows; could indicate that the market is in a strong trend, however, if price is unable to make it through the 7 - 20ish per cent 'barriers', then, upon rejection and a subsequent fresh retrace and breaking of the previous swing high/low can be a confirming sign of the weakening of the current trend.

- price making deep retracements and price is only able to make it back to a small portion of the original 'Parent Fib price swing'; can indicate/confirm that the current trend is weakening. A very important 'kiss back' is the 61.8% area/price zone (the 'PT A....' price level/Zone of the Fib tool).