FibFabSwingSystem

I just read another Fib Fan system and am confussed so I figured I would show everyone a good system I have watched for a long time. I probably will just show you and not continue with the thread but we will see.....

SYSTEM

 

1. See a swing on a good 1hr + time frame.
2. Place the FibFan on chart as pictured
3. If price crosses the 73% fib and closes outside, get ready.
4. When candle closses inside 73% fib, enter. (stop above/below swing)
5. Manage trade usings swings/fib lines etc as pictured but up to you.

see pics to see some trades and thoughts... and yes, last pic should have been first!

And the name "FibFab"was a damn typo, I meant to write FibFan... It's stuck there now I guess



http://s8.postimage.org/45mraq1v9/fibfan2.pnghttp://s12.postimage.org/xi1zeynv1/fibfan3.pnghttp://s14.postimage.org/537c3gqtt/fibfan4.pngEnjoyhttp://s15.postimage.org/gg9m2f77v/fibfan1.png

pics explained....

 

1. shows a nice trade with entry, stop and exit. Exit can be managed however you like but allowing some movement works well.
2. entry candle is huge so we would miss this trade
3. good entry with unfortunate large stop. part of the game though and worked out (still open trade)
4. details on pic, but i would miss this as the angle is terrible so the swing isn't a nice swing. also the entry if you were going to take it is so far away the RR is bad.. no dice for me.

Any questions?

For those not familiar with Fibfans, I seem to recall a tip on placing the Fib is to go from left to right.
It will ensure that the the fan is pointing the right way.

So, what you are suggesting wait for 73% retrace and enter on trend continuation which is the opposite of the other thread?
EP

Yes, this is getting back on the trend after a decent retrace. There are some slight fib conditions you can change to help placing the fib but for now that should be enough..

When you say 73% retrace EaglePip, price must close past the 73% not on it. And when entering, price must close past it once again, not on it.

I should point out, I wasn't posting anything like the other thread. I was just confussed by the other one so I thought I would give my simple system. FFSS or 2F2S or 2FS i don't know, someone make a name for it.

juicyt

Often once you find the good swings on say a 1hr TF, it pays to drop to 30min TF for entry. Try to get a 2:1RR this way.

juicyt

http://s10.postimage.org/3te3w4abt/UC7.png

Wow the system looks nice and easy will do some back testing on it

Hi Juicyt,

Please have a look at my chart for EUR so if I have drawn the fan correctly I have to wait for the price to cross the 73% and then if it retraces and closes below 73% and the next candle is also under 73% then I enter short as per your rules ?

Hi Hullas,

The Fib Fan is drawn wrong. See my pic for details. I would have drawn the fan from where you begun to the first purple dot on left. Moved the fan after no entry and double bottom occured to the right where the arrow is pointing (another purple dot) then this would give the right setup.

Let me know if that made sense or you don't understand.

http://s12.postimage.org/7o2duhphp/eu1.png

Once you begin to draw them you will be suprised to see just how much price respects the lines.

Ok I have redrawn them and notice that I have couple of extra candles towards the end may be it is because of the broker.

I have a question how do you decide which swing high/low to pick for Fib Fan to draw? Any particular method or rules you follow?

Also any particular rules for TP/exit?

The first thing to keep in mind is simple : look for a good looking trending chart if possible but always keeping in mind higher highs or lower lows. Sometimes the trending chart part might not work as you could be getting in on a new trend but certainly higher high lower low will keep you on the right path. If the chart gets ugly and not giving you what you want, look somewhere else and let price make a move before you come back to it.

When placing the Fib Fan, do point to point. Once you keep doing this you will soon see that you can adjust the fan to line up with price/candles. Or as I said if you get a double top/bottom you can adjust to those. This is really the tricky part but keep in mind you want things to line up. On that picture you just did, see how many times candles/price respected and used/bounced off the fib fan? Perfect. You know you have it in a good place there.

The best way to do FibFans really is by starting on your chart a few weeks back and begin drawing them. You will soon see where to place them without much effort at all.

TP is about the hardest part of all good systems but i would recommend locking in Break Even once price moves and closes away from your entry candle, then maybe 2x for a TP or trail your candles once you get about that far away. This part you will have to decide.

throw some pics up if you like and I will talk them through

juicyt

http://s10.postimage.org/5bpp8c6ax/UC1.png

then

http://s14.postimage.org/urh67pz0x/UC2.png

then...

http://s13.postimage.org/jlxxr3gxz/UC3.png


and..

http://s12.postimage.org/dosmufyy5/UC4.png


and..

http://s9.postimage.org/dav2h5ve7/UC5.png

continued..

http://s7.postimage.org/toy8566pn/UC6.png

and a better entry on 30min chart...

http://s10.postimage.org/6hyakvjzd/UC7.png

I hope that helps. Keep in mind higher highs and lower lows for trend direction. If in doubt, move on to another chart until things become clear.

juicyt

You really do not need the fib fab swing fan...just by removing everything and adding a sweetspot indicator(00,20,50,80) would make your trading better....i suggest learn by watching the price...don't do anything..just watch it till you get it figured out..after that you might wanna to read many books not regarding T.A but on the market structure itself...options and futures directly impacts the spotfx market....
Just sharing ya ;-)

Happy for a discussion Supertrader9 but please, a picture tells a thousand words so add one to your post.

juicyt

Actually, I was thinking along similar lines.
In the attached chart price has retraced from the 00 sweet spot twice already.
Instead of waiting for 73% retrace, it would appear that the higher probability trade would be Countertrend at the round number, maybe with HL or bullish bar confirmation.
EP

Hi Juicyt,

Do you only trade USDCAD as most or all your examples are from UC? Have you tried on EURUSD or other pairs? I have done some back testing and the system looks good. Hopefully we can do so some live trades here and test the system.

That is a whole different ball game than what i have shared.

If you can pick the entry and exit etc and make it somewhat rule based so you can trade it effectively, then go for it.
I've tried picking tops and bottoms and to be honest, i like to go with the trend. And i wouldn't say double tops/bottoms are higher probability, not from the years i've looked at charts anyway. I like momentum and i'll jump into a trade with one if all adds up.

This is a trending price action system using sup/res. Do some testing and let me know what strike rate you get.

juicyt

I think you can see the pairs i trade with in the chart. Just majors with some Au and Nz Pairs as they give me the best spreads. Infact Aus and Nzd have been the best to trade for me for a while now.

juicyt

Juicyt,

Please have a look at my USDCAD char have I drawn it correctly?

Or was I suppose take the red long candle as the next high?

As per this chart I am suppose to enter long on the start of the next candle which will open inside the 73%