Hi PT, what hour GMT is better for this system. I live in Europe (spain) and I think that we have diferent zone horary. I make zone box in the start Asia session ( 2am and 5am GMT ) and I wait breakouts in the start Europe session.
I have decided to start contributing again to this thread. The method is now several years old and has been successful with changes as the market changes. I will be posting charts and updates but I will not be able to post every day. I have found this method will work in any market and on most pairs. I will be updating the first page as we go on.
I am going to post a few charts I already have and then we will add newer ones as we move forward. You can see on this chart we took the short position when we broke from the last swing. Always wait for confirmation and remember there is not hurry. Watch the first candle that opens outside and give it time to more in the right direction. Also notice we place stop loss behind last area of resistance in this case. Will be explaining more as we go and why we take two positions.
This method works but you can see it is pretty much indicator free. We will be referring to longer time frames in the future. It is my assertion that the best indicator is when price crosses a point of support or resistance live. All other indicators are lagging.
Here is an example of a very healthy breakout. Now the reason for the 2 positions. First, the two most overlooked elements of trading are Fear and Greed. This method give you the opportunity to take advantage of both. When we hit 20 pips profit, I immediately move my stop to break even +1. Thus the fear of losing is now gone. Next we have a point where we are up, but at a point of resistance or support where it is possible to turn. Here we have TP 1. Put some money in the band and you have had a good day. Now lets satisfy the greed. Let the other half of this position run until either the day is done or we have hit a brick wall. Try this!
Joined Oct 2008
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Status: Sailing for pips
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Don't want to step on your foot
but I took a buy .2 lots from break out of a box i drew from -23.6 fib to S1. On the pivot then just closed .1 lot for profit at daily pivot low letting the rest ride while moving up stop
but I took a buy .2 lots from break out of a box i drew from -23.6 fib to S1. On the pivot then just closed .1 lot for profit at daily pivot low letting the rest ride while moving up stop
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It's all good! I usually setup to take the breakout in the Euro session. The reason being we have consolidated this pair while the US and Europeans slept and now it is ready to move when these markets come online. Usually that first push is enough to put profit in the bank. Then we trade 61.8 and 38.2 bounces in US session. More to come!
Here is another example of a sweet breakout during the European session. In this one, we took profit earlier here but noticed what happen with position 2. I am much more comfortable scaling out than adding in to a position. I like putting money in the bank and don't like to give much back. You must give the 2nd position room, but don't give back all you earnings. Move the stop ahead and it should be strategically placed behind support or resistance, depending on the direction of the trade.
Do you draw your fibs and pivots from the London's pervious open?
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No, I take the last dominant swing for the day. (It could be high to low or low to high too) I use the 15 minute chart to enter trades but also use 4 hour to see the big picture. I will give examples later.
Another part of the Zone Breakout Method is 61.8 bounces. The main thing you want see here is confirmation. This move will happen numerous times the the day and the week. You can trade it on both the 1 hour and 15 minute chart. If you don't believe there is a 61.8 bounce on all time frames, then you need to pick another source for your income. If you don't know this, you don't know Forex!
Hi powertrader
I am a great fan of Fib
would you mind showing us more clear instruction of how and from where to draw the fib ..
Thanks a lot
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Thanks,
I love Fibs too and I am not actually a Fibonacci Trader but use it in my method. I don't think you can know too much about fibonacci. Always pull left to right and should cover the last dominant swing. We are looking for a move back from 0 which some would call retrace. There are certain percentages that are more important than others because this is where the big boys place orders and Tp's. I am going to spend lots of time with Fibs on this thread.
Here was the move from the Euro Session. This move was news assisted but we took the break at the normal spot. Notice we simply move the Fib up until we have some price action. TP's were pretty easy after the 2 news candles.
Here was the move from the Euro Session. This move was news assisted but we took the break at the normal spot. Notice we simply move the Fib up until we have some price action. TP's were pretty easy after the 2 news candles.
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I see you pull from left to right for fibs but in this case you pulled bottom to top but others were top to bottom so which way should it be?
