Advanced system #2 (Fibonacci Trading)

Thank you Adit!

Answering your questions:

1. I'd give preference to EMA.

2. The lowest time frame I would attempt is 1 hour, although 4 hour and above is still preferable.

3. In advanced system #4 we want to let the trade run to reach maximum profit, which is set to roughly +90, +100 pips. However, if the profit target is not reached by 1pm EST, you'll need to close the trade manually with whatever profit is made.

Also you can set your stop loss to breakeven as soon as your trade gains +50 pips and take 1/2 of the profit out, so that you can be relaxed about the future price
fluctuations.

Another way to manage it would be:
1. take 1/3 of a profit when the trade gains +30 pips, don't move the stop loss
2. take 1/3 again when the trade reaches +50 pips total, set stop loss to breakeven
3. Close the remaining position at 1 pm of not closed automatically.

Best regards and Happy trading!

Edward

dear my best mentor Edward and the great team there,

honestly,i've spent my time at least almost one month to learned all the knowledges (including money management,etc) & strategies in this site,and guest what?i just slept only 3hours a day,the one and the only reason is You and the team are succesfully transform the "super difficult forex knowledge" became the simple and easier to understand,it has changed my mind set in trade,it was opened all..

i really love Advanced system #1 (Midnight setup),Advanced system #4 (Early bird Breakout System) and Advanced system #2 (Fibonacci trading),finally,i decide to use those strategies as my best.talk about the systems,i have a few question to you,and really really hope your best advise..

1. in Advanced system #2 (Fibonacci trading),which is more accurate indicator?EMA 100-150 or RSI 14?in this case,the EMA shows downtrend and RSI is above 50..

2. is there any lower time frame for Advanced system #2 (Fibonacci trading)?and what is the best requirement?

3. in Advanced system #4 (Early bird Breakout System),i'm still confused about when is the best time to take profit?
the example case is:
1. after 5 first candles in GBP/USD,the prices reached a buy stop order and moved up to running profit $30,i holded it
2. but then it was turning back again crossed a buy position at first and fall down crossed the sell stop order to 20pips below the sell order (which means,example:my buy position touched it stoploss (-$110) and sell posiion is $15 and i holded it
3. and in the end of the during day,the last position was above the sell position and below the buy which means my sell is minus (-$50)

it was very dissapointed me,so i need ur best advise about what should i do when my running position is profit just like in point number 1?should i cutprofit or better to hold?or i cut the profit and set the sell stop at the first buy stop position?
i really need your best suggest,opinion and advise about that..

i'm so sorry for the lots of question above,
please help me,now,i'm in the plan to build and decide the system that will makes me feel comfort and enjoy the trade before i go to the live trading..

thank you very much Edward,
best regards

adit in jakarta

The answer is #1.

Best regards,
Edward

Hey Edward,

i got one more question regarding the extension of the actual Fibo, when a new low (in a downtrend) appears. What is such a low?

#1 A candle (where a fractal is painted), that a higher low before, and a higher low after that candle OR

#2 A Candle which just got a lower low than the candle before?

Hope you understand my problem and are able to help me ;)

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

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

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

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

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.

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
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

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 Fasi,

that's a difficult question. In fact, I don't know what will be the best number for those time frames... There we'll be looking at less obvious short lived trends, a much higher number of smaller waves, and on top, we would need to pay a much higher attention to the volatility factor of every currency pair we trade with.

Is there a certain wave length we could use? I dont' know. I've never traded or tried to find it out on those smaller time frames. I'm sorry.
You can start by taking every AB wave and then average it out for your chosen currency pairs.

Kind regards,
Edward

Hello Edward,

If i want to use this strategy on m15,m30 than how much pips for a valid swing should i look for?. Or i can go with any AB swing wave?

Regards
fasi

Yes, the candle you've highlighted as "Entry" should close - it'll become our signal candle - immediately after the close we can enter with a Buy order.

Happy trading!
Edward