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Simple & Consistent Fibbing Method

  • #1,901
  • Apr 5, 2011 12:31pm Apr 5, 2011 12:31pm
Quoting simoneg
This Fib confirms entry and the trend. We fib the high to the last low, which in this case happens to be the low of the day, and wait for a candle close below the 50% level. Once there is a CANDLE CLOSE below this level, a resistance level will be created here. Wait for a retrace to this level and enter on the retrace, placing stop above the 61.8 or 80.9 and target the -34% level then -55% first.

FIB A - Red Fib
FIB B - Green Fib

http://img148.imageshack.us/img148/5968/fibb.jpg...


i am very sorry to ask this question..i am relative new to fib but i hope someone can help me with it..

1)how do you constitutes a bounce or test of the fib line??

lets say price go past the long fib line and later close below it..this is a bounce or test of the long fib line am i right??

Only when price close above it then it's considered a break of the long fib line am right??

2)What about if price did not go past any fib line? As in it jus move up and down without even touching any fib line? i jus don care about this candle and that is not a bounce or test am i right?

3)one last question..EG..wait for candle to close below the 50% fib and wait for a retrace to this level and enter on the RETRACE..in this case what does retrace means?does it mean that the candle after the close candle(mention above) needs to move past the 50% fib line and come back or jus need to move above the close of the previous candle and come back before i enter on the price level of the close candle(mention above) ? WHY CANT I ENTER ON THE CLOSE OF THE CANDLE AND NEED TO WAIT FOR PRICE TO RETRACE BEFORE ENTERING??



Sorry but i am really confused and hope someone can help me with this explanation. If possible teach me through a chart..

Your help is greatly appreciated =)
  • #1,902
  • Apr 25, 2011 11:51pm Apr 25, 2011 11:51pm
  •  apt
  • | Joined Oct 2010 | Status: All your cookies are belong to me. | 1,114 Posts
I read through some of this, I'm a big Fibonacci fan.

But I fib a little bit easier.

I take a Fibonacci from a high and a low whether it was all of last week, or last month.

And I use it forever, and I just keep adding to it, ie. 200% 238.2% 250%, etc.

I'm not too good with math, and I don't put too much mind into it, but somehow it works. On the negative and positive side, somehow these numbers always act as support and resistance and I've never had to redraw Fibs.

So just my 2 cents, I see some of these charts, and you guys have a lot of lines on there. Don't think there is any reason for that really.
  • #1,903
  • Apr 26, 2011 3:52pm Apr 26, 2011 3:52pm
could you explain your system more apt?
  • #1,904
  • Apr 27, 2011 1:13am Apr 27, 2011 1:13am
  •  apt
  • | Joined Oct 2010 | Status: All your cookies are belong to me. | 1,114 Posts
Quoting A-game
could you explain your system more apt?
It's not a system. Just a method that I use to help me make trades. Here are some examples.

Here we have AUD/USD.

I drew a Fibonacci on the high and lows on that pair, weeks ago.
And as time progressed and the pair moved past the high, I just added more fibs.

-23.6% , -38.2%, -50% and so on.

Look at how the pair follows those extensions with discipline.


http://i54.tinypic.com/111450j.png

Now look at EUR/USD.

Same thing.

http://i53.tinypic.com/24q1jr9.png

My point is, I don't see the purpose of redrawing Fibonacci Retracements. I don't know how Fibonacci applies to Trading, I don't know why it works, and I don't know why my method works because I know for sure people redraw their Fibs on a weekly basis if not daily.

Whether Fibonacci has a "mystical" attachment to trading, or whether the computer algorithms all over the world which the big banks use , are using old Fibonacci and consistently adding extensions to them - I don't know that either.

But what I am doing is working.

I have the levels, now I am just working on the direction.

Once I have a good idea of direction and levels, all you need is discipline. Which I truly lack.

Anyways, thats besides the point. I hope you understand what I said in my original post though.
  • #1,905
  • Apr 27, 2011 8:02pm Apr 27, 2011 8:02pm
Quoting apt
...
I take a Fibonacci from a high and a low whether it was all of last week, or last month.

...
so does it matter where do you draw the fib ? do you take the high/low of the whole week or a month ? I understand the part of adding additional fib levels ... just don't understand how you pick that one first fib placement

thanks
  • #1,906
  • Apr 27, 2011 8:11pm Apr 27, 2011 8:11pm
  •  apt
  • | Joined Oct 2010 | Status: All your cookies are belong to me. | 1,114 Posts
Quoting m78
so does it matter where do you draw the fib ? do you take the high/low of the whole week or a month ? I understand the part of adding additional fib levels ... just don't understand how you pick that one first fib placement

thanks
It wasn't planned.

I took a break from trading, and started again in April.

Fibbed then, and just kept adding.

You could probably just add from any point in time. I haven't experimented with it; you're more than welcome to try though.
  • #1,907
  • May 4, 2011 12:02am May 4, 2011 12:02am
Quoting m78
so does it matter where do you draw the fib ? do you take the high/low of the whole week or a month ? I understand the part of adding additional fib levels ... just don't understand how you pick that one first fib placement

thanks
Focus on swings - by that mean fib highs to lows and lows to highs. Do this on different timeframes. Look at how price responds and how it hits targets. After a while you will get a feel for it. Theres no right and wrong way to do it, i know that doesent help when you are trying to learn but focussing on the swings as you see them is the best thing i can tell you.

I dont trade SFM in its pure form but choose to look for the "zig zag" ABCD retracements Simone talks about, ie buying C's and selling D's and vice versa. AUD, EUR and GBP have had many classic trades like this in the last few days and months. Get in at C and ride to target for at least 100+ pips commonly. They should happen at least once a week if not several. Especially bounces off the 61.8 and 50, if that happens and you have S/R around that area then more often than not i will go in if it all makes sense. The more of a "hotspot" the better - ie you have TL's pivots etc in the area too, then bang, go for it.

Look for ABCDs on the H4, then get in as close to the C point as possible, max 30 pip SL or less ideally. You may then want to take some off at obvious resistance points like the 80.9, highs after that, or hold on till first Target, which is hit very often but not all the time, and depending on what timeframe youre doing it on.

This is roughly what im doing anyway. Just remember, support and resistance counts FIRST and FOREMOST, so make sure you are clear on that (ie horizontal levels that hold over time), and youll be on solid ground for your trades :-)
  • #1,908
  • Sep 16, 2011 6:59pm Sep 16, 2011 6:59pm
Quoting simoneg
This method can be used at any time. I prefer after 3:00AM EST, because most major trends occur around that time. I don't know how clearly I have explained. Please ask questions for clarity.
in your time trading 03.00AM EST, can you tell me in what time zone you are?
or this 12.00AM - 03.00AM is the time when market open in every broker time?
cause some broker have different time zone. so, i'm confused adjusting your 3.00am est with my local time

sorry, i'm a newbie, so please educate me...

thanks
  • #1,909
  • Sep 16, 2011 9:46pm Sep 16, 2011 9:46pm
london-europe open is overlapping with asia session.... so this will give us good setup. but overall u could use anytime want. don't make it fixed. be dynamic coz market is so complex and dynamic.

the only one certainty is uncertainty in forex may be in life also ( what u think ?) .

it's very normal if we're confused in fx world mate.......

thing that i learned using fibo is min max based on time frame, period frame and trend in our mind ( about the trend, will be different between one to another.......let it different don't fight that's very normal situation ) minimize risk and max profit... and always see rejection area first before make position

Quoting rendy
in your time trading 03.00AM EST, can you tell me in what time zone you are?
or this 12.00AM - 03.00AM is the time when market open in every broker time?
cause some broker have different time zone. so, i'm confused adjusting your 3.00am est with my local time

sorry, i'm a newbie, so please educate me...

thanks
not euphoria follower
  • #1,910
  • Oct 13, 2011 9:57pm Oct 13, 2011 9:57pm
  •  Ainks
  • | Joined Feb 2010 | Status: Just trade for money... | 9 Posts
Quoting iqyu5an
london-europe open is overlapping with asia session.... so this will give us good setup. but overall u could use anytime want. don't make it fixed. be dynamic coz market is so complex and dynamic.

the only one certainty is uncertainty in forex may be in life also ( what u think ?) .

it's very normal if we're confused in fx world mate.......

thing that i learned using fibo is min max based on time frame, period frame and trend in our mind ( about the trend, will be different between one to another.......let it different don't fight that's very...
hi bro iqyu.. nice to see you very active in this forum.. and very good Paris van Java thread you have.. but as Jr member I can participate there..

you've said you used fibo based on time frame.. so which TF you prefer for putting your fibo.. Daily or bigger TF, or H4 and lower ?

one thing.. nice fibo set you have mate
  • #1,911
  • Oct 13, 2011 10:11pm Oct 13, 2011 10:11pm
Hi...
ahh too much bro ... i just share what i think i have to share... not more.

yes... i started my fibo experience in scfm thread by simoneg. i learn so much here and simplify with my own style.

i am using intraday...daily ...weekly ... monthhly ... quarterly and annual/yearly

once again... thank.

and in a moment you can jump in paris van java thread.

just wait ....

Quoting Ainks
hi bro iqyu.. nice to see you very active in this forum.. and very good Paris van Java thread you have.. but as Jr member I can participate there..

you've said you used fibo based on time frame.. so which TF you prefer for putting your fibo.. Daily or bigger TF, or H4 and lower ?

one thing.. nice fibo set you have mate
not euphoria follower
  • #1,912
  • Nov 25, 2012 10:56pm Nov 25, 2012 10:56pm
Hello all,

I came to FF tonight to find information on harmonic patterns based on fib numbers and found this thread also. I am sad to see that what started with such exuberance seems to have died out. May I ask those who were regulars here, what were the results you got from fibs? How many of you used the way APT. used to calculate fibs with any success. I am still waiting to find one person on FF that will say that he makes a living with either fibs or harmonic numbers, and can do it consistently at least 7 out of every 8 weeks, If you cant there is only one book I would even bother reading, and its by the Fib Queen herself. I can say that I am no longer in the red when I follow her patterns. But I want to hear from you folks first.

much thanks,
Silat
  • #1,913
  • Nov 26, 2012 2:15am Nov 26, 2012 2:15am
Hi Silat,

I only saw this cos i was still subscribed to the thread...

I found it seemed to show promise but I was never able to get consistent results. Maybe I was doing it wrong, i dont know...

I dont do it anymore though. Im a student of Martin Cole whose course is free now (it wasnt when i joined!). I find it amazing that anyone could achieve success through "traditional" tech analysis methods now. Havent met anyone who has personally but if they do, great.

From what I know now from Martins model of the markets, such success seems impossible. Success with his method is very possible, no, likely, and quite achieveable. After a year Im very confident with it and starting to achieve results.

Good luck with whatever path you choose.
  • #1,914
  • Last Post: Jun 6, 2013 8:05am Jun 6, 2013 8:05am
Quoting loudoniii
Dear Simone Your SCFM trading system rocks ! I just discovered it this week, and have been demo trading USD/JPY, just to get into it. I love the 50% Breach Fibo entries ..... your method of using Highs and Lows back in history seems to highlight some great entry levels. Coupled with the Intraday Fib set to show Daily potential target zones, and Weekly Fib set to show a longer-timeframe perspective, SCFM is really easy to use but tremendously powerful ! I like the Bobokus-style Fibs. Since the Fib levels are symmetrical anyway, I use the following...
I download the http://assets.forexfactory.net/images/attach/mq4.gif DZ box 0.0.mq4 file but I can't get the boxes to display. Has anybody got this to work or have an update of this indicator
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