Hi,
This is just an extension of the Simple and Consistent Fibbing Method Thread. Just taking trades using that System only.
I trade H4 and Daily charts and mainly the GBPJPY, EURJPY and NZDJPY. Basic principles may be grasped from thread referred above.
Fib Settings being used:
100% - High
0% - Low
80.9% - Resistance
19.1% - Support
38% - Short Level
62% - Long Level
50% - Pivot
1.34% - Bull Target #1
1.55% - Bull Target #2
2.27% - Extended Bull Target #1
2.68% - Extended Bull Target #2
-0.34% - Bear Target #1
-0.55% - Bear Target #2
-1.27% - Extended Bear Target#1
-1.68% - Extended Bear Target#2
Some Key Principles and Guidelines:
1. Retracement to the 19.1/80.9 on a swing mainly heads for extended target #1
2. If a daily bar closes bearish, price will most likely retrace to the short level of that bar and continue to its targets. Sometimes retracement may deepen to long/resistance levels. Vice versa for bullish closing bars.
3. If price reaches a target and fails to close beyond, this could indicate the end of the move and the beginning of a reversal or retracement.
4. If price closes beyond targets, this could suggest targets will be used for support/resistance for continuation.
5. The hottest areas on the fib are the support and resistance levels.
6. Most times when price reaches an extended target the market reverses or gives a strong retrace.
7. Always fib the swing that started the current move and the major price bar (if any) at the bottom/top of the move to get a good estimate of where price is headed. Example below...
Figure A - shows the swing on which price bought
Figure B - shows the major price bar at the bottom of the move. See how tightly the price targets converge? Now look at price reaction.
This is just an extension of the Simple and Consistent Fibbing Method Thread. Just taking trades using that System only.
I trade H4 and Daily charts and mainly the GBPJPY, EURJPY and NZDJPY. Basic principles may be grasped from thread referred above.
Fib Settings being used:
100% - High
0% - Low
80.9% - Resistance
19.1% - Support
38% - Short Level
62% - Long Level
50% - Pivot
1.34% - Bull Target #1
1.55% - Bull Target #2
2.27% - Extended Bull Target #1
2.68% - Extended Bull Target #2
-0.34% - Bear Target #1
-0.55% - Bear Target #2
-1.27% - Extended Bear Target#1
-1.68% - Extended Bear Target#2
Some Key Principles and Guidelines:
1. Retracement to the 19.1/80.9 on a swing mainly heads for extended target #1
2. If a daily bar closes bearish, price will most likely retrace to the short level of that bar and continue to its targets. Sometimes retracement may deepen to long/resistance levels. Vice versa for bullish closing bars.
3. If price reaches a target and fails to close beyond, this could indicate the end of the move and the beginning of a reversal or retracement.
4. If price closes beyond targets, this could suggest targets will be used for support/resistance for continuation.
5. The hottest areas on the fib are the support and resistance levels.
6. Most times when price reaches an extended target the market reverses or gives a strong retrace.
7. Always fib the swing that started the current move and the major price bar (if any) at the bottom/top of the move to get a good estimate of where price is headed. Example below...
Figure A - shows the swing on which price bought
Figure B - shows the major price bar at the bottom of the move. See how tightly the price targets converge? Now look at price reaction.
Attached Image(s) (click to enlarge)
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