Advanced system #2 (Fibonacci Trading)
Submitted by Edward Revy on May 6, 2007 - 04:39.
The fact that Fibonacci numbers have found their way to Forex trading is hard to deny.
Moreover, trading currencies with Fibonacci tool for many traders have become the bread and butter of their whole trading career.
So, shall we look at the one of such good Forex trading systems today?
Trading setup and tools we need:
Time frame: 3 hour (or 4 hour).
Currency pairs: any.
Indicators:
Fibonacci tool - our main tool
EMA 100 – green (visual guidance)
SMA 150 – red (visual guidance)
RSI (14) on a daily chart
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I am new to this site. Great job by its organizers!
This very ICWR is the trading method I used, which has always protect not only my capital but doubled it. It helps get rid of emotion. However, to fitter the noise (false signal), I used 30,50, and 100EMAs and 500 simple moving average (on 5min chat) to determine how far the trend could move. I always milk the best out of a big move
Hi
I have one question for the case of big wave which is about 300pip and more and when we draw fibonacci levels on it and we wait for price to pull back into ""must channel" while doing retractement, as the main wave we draw fibonacci levels on it is big its retracement is also big, so I see there may so many new waves occur more than 100pip before our rule of entry done, in this case do we have to move fiboncci to that new waves happened within retracement??
Best Regards
Kamalzakhoy
Hi,
in this case we'll leave the large Fib wave in place for the reference, and pay attention to smaller 100 pips waves within it.
Kind regards,
Edward
Hi,
first I would like to say big "thank you" to Edward and everyone for sharing your ideas. I have one idea as well. I personaly used ADX (above 20)indicator in one day chart for entry instead RSI and it is much more better. I have been tested it for 2 months and results are amazing.
whats the profit target in this strategy?i have also tried adding the 75 and 25 levels do i type them as 0.75 and 0.25 am using mt4 sorry for this basic question but ad like a clarification
No problem,
Yes, you type in 0.75 and 0.25 for Fib levels in MT4.
Regarding profits question, you'll be able to find my answer on this page:
http://forex-strategies-revealed.com/advanced/fibonacci-trading/cpage-5
Kind regards,
Edward
Hi Edward,
Thanks for this strategy, not sure if I can ask you this question here. Can I use this strategy to trade silver futures or any commodity futures.
Thanks
PC
You most likely can, because the principles of technical analysis of the markets will be similar, if not the same.
Although I can't give any deeper reassurance, since I don't trade Futures.
Kind regards,
Edward
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