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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Hi Edward,
Is this method only useful in heavily trending markets?
Regards,
George
Hi. This is some really good stuff. I have just started trying it out in the mt4 demo and it gives such good signals. So good of you to share it. I dunno if this is a smart idea or not, but seems to be giving gd results atm so thought id share:
I am using stochastic 15, 5, 5 on 30min chart using it with this method. It seems to help confirm you are going in the right direction plus with parabolic sars. Think this is a good combo for GBP/JPY, what do you think?
Pete
Hi Pete,
Yes, it should work. And if you feel like adding further comments on your testing results later, it would be great to hear them.
Regards,
Edward
dont try to complicate matters , the signals are valid enough they dont require extra filters. you can also use 40 pips swing on 5 minute charts including the sma, ema and rsi(daily) filters . very excellent results.
i got a cummulative of 440 pips from usdchf and eurchf and both trades are stil running.
i knew the system before joining this site
hi all,
can this great system profitably use for GBP/JPY?
any buddy tested it?
tks a lot
Ele:eleforex@163.com
of course but it takes patience to get valid signals from gbpjpy because the pair rarely registers in the must ( or retracement) channel which would enable you look for closing above or below .750 and .250
you should also take long trades with care when daily RSI is overbought and short trades with care when daily RSI is oversold
Edward,
Please take a look at the ICWR strategy and let me know if you are trading the same strategy besides the EMA and SMA addition?
ICWR thread: http://strategybuilderfx.com/showthread.php?t=15924
TimeFreedom
Hi TimeFreedom,
I don't have a user account at that website, but I think I was able to find that strategy.
Yes, the idea is similar.
Regards,
Edward
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