Advanced system #2 (Fibonacci Trading)

No, because daily RSI and SMA+EMA don't agree on a trend.
From your description: RSI shows an uptrend, while SMA+EMA suggest a downtrend.

Best regards,
Edward

This is old ICWR forex strategy, but thanks for mentioning in a concise manner. In the original strategy, 40 pips were used to indentify the active wave

Hi Eward,
what a great work! Unbelievable that u made it public. THANKS.
Maybe I missed something (although I read the whole thread a couple of times) but what do I have to do when the following happens:
I draw the fib retracements on a 100 pip DOWN move (all other 3 indis are in line for a down move). Now - after a retracements of not more then to under the 38.2% level - the price drops below the 0 line but not making a new 100 pip move. Do I have to "widen the former 100% range to the new low (so that the 0% line meets the new low) or do I leave the former range alone (so the 0% line stays @ the former low) and still wait for a retracement to the 38.2% level?

Thank you!
If on the retracement the price didn't enter the "must channel" and, after resuming a trend, dropped below the previous low (which you connected Fibs to), but less than for 100 pips - you have to readjust the Fibs to a new low.

If on the retracement the "must channel" was penetrated, then for any down move which is less than 100 pips, we draw no new Fibs and do not make adjustments - the old Fibs stay up.
Price may not, however, come back to the old Fib retracement levels again, so if you have closed a trade earlier, or didn't trade, there will be no more opportunities until new Fibs can be drawn or the price makes a run for the old Fib retracement.

Best regards,
Edward

Thanks for this wonderful site.
On the sides, Is there a way one can save a modified MT4 fib tool so that one can use it alongside the default one or others? ok, When you modify the tool it is saved by default when yu close the program until yu modify again or reverse to default. but is ther a way one can save several of the modified tools and use them alongside each other?

I understand what you mean, but I don't know about such feature in MT4.
I believe it doesn't exist.

Best regards,
Edwards

Edward,

Thanks so much for telling me of this system. It's been very helpful to me. I've also explored the mentioned ICWR material, which is also excellent, and I like your changes and additions to the system.

I have a couple of questions which are based on your statements below which appeared in a prior answer. My questions are lettered, below your numbered statements.

1. If on the retracement the price didn't enter the "must channel" and, after resuming a trend, dropped below the previous low (which you connected Fibs to), but less than for 100 pips - you have to readjust the Fibs to a new low.

A. No question regarding #1. Thanks for this clarification. Very helpful.

2. If on the retracement the "must channel" was penetrated, then for any down move which is less than 100 pips, we draw no new Fibs and do not make adjustments - the old Fibs stay up.

B. While I understand #1 and #2 above I want to know what to do if there is a retracement where the "must channel" is not penetrated, but, following the retracement, there is a move in the direction of the trend of at least 100 pips. Does this move following such a small retracement constitute an opportunity to draw new Fibs and move the Stop? If it does, what is the minimum move of such a retracement?

(I would assume the retracement has to at least be one candle with a high and low opposite to the trend direction, not just an inside bar, and not just a small sideways trend, but an actual corrective retracement, but I'm not sure how to quantify a corrective retracement wave to a degree justifying redrawing the Fibs.)

3. Price may not, however, come back to the old Fib retracement levels again, so if you have closed a trade earlier, or didn't trade, there will be no more opportunities until new Fibs can be drawn or the price makes a run for the old Fib retracement.

C. I don't understand #3 at all. I think it would help me if you gave an example, showed a chart, or presented some made up numbers, or maybe just stated it in a different way.

I am attempting to make sure I have a completely mechanic understanding of this system and eliminate subjectivity as much as possible.

Thanks so much for this thread and all the work that you've generously put into it.

Jim Wallace

Hi Jim,

Sometimes trading your own strategy is much easier than explaining it to someone else :), especially when it comes to each trading case.

I tried my best to explain it, but there could be some commissions, possibly, so please feel free to point them out if you find any.

That's how it should be:

2. If the the "must channel" is not penetrated, but, following the retracement, there is a move in the direction of the trend of at least 100 pips, then we re-draw the Fibs only when the move exceeds the previous high/low, which we used to connect Fibs to. Otherwise there is no point to change the Fibs, since price can still return to the old Fibs.

3. Here I referred to the same "must channel". If price doesn't come back to test it, all you can do is wait till there is a new move of 100 pips + this move exceeds the previous high/low in order to allow re-drawing the Fibs.

Best reagrds,
Edward