Advanced system #2 (Fibonacci Trading)

That's simple, Michael.

"Insert" -> "Indicators" -> "Moving average".

The settings menu for the Moving average will pop up. Find "MA Method" there and change it to Simple, Exponential or whatever is needed.

The same way you add RSI or any other indicator.
RSI is found at: Insert -> Indicators -> Oscillators -> Relative Strength Index.

Good luck!

Sorry for the newbie question but I'm confused on what indicators to pull in Mettrader and the settings. I know how to add to the charts but not sure speciffically in Metatrader where the RSI SMA and EMA indicators are. I find moving averages but not Simple Moving Average or Exponential Moving Average.

Michael

Hi Jo

Correct.
That's they way to trade this method.

With regular Fibonacci rules, we enter at retracement levels of 0.618, 0.50 and 0.382.
But, note that in order to jump on such retracement, you need to be sure that the market is going to obey it. To do so, you need to make an additional chart analysis, or call for a help from another indicator, otherwise you're guessing at every Fib retracement level, rather than trading.

Returning to our strategy here. If you don't like to be that late on entry, then you can try monitoring a smaller timeframe, for example, 1 hour or 30 min, where you'll look for the same requirement: a whole candle needs to close outside 25 or 75 level.

Regards,
Edward

Hi Edward,

Please explain further, when you mean the whole candle should close above/below the 25/75 level before placing an entry trade.

I have noticed that when that happens, (i.e the whole candle to be closed above/below the 25/75 level), the candle itself is usually a long candle and we would have most of time entered at a much higher price than the previous high of the fib wave (BUY scenario) and vice versa. this would have made us lost quite a substantial no. of pips from the retracement level, say at ard 0.618 or 0.382 level if we chose to enter at those price levels.

thanks for your patience.. cheers

Jo'

Hi Mike,

It would, but with some additional false signals.

Regards,
Edward

Hi,

Would this strategy also work on smaller time frames, i.e. 1hr.

Thanks
Mike

Hi Dennis,

As we know, doji is a reversal candlestick. It certainly lowers our chances to be right, so why take unnecessary risks. Instead, use a logical approach: set a pending order above or below the doji candle according to a trend.

Best regards,
Edward

Hi Edward,

Also this fibonacci system is great. thank you for sharing.

I have a question about opening a trade after following the rules as discribe.

What are u doing when the candle that closed below or above the level(0.75 or 0.25) is a trend reversal stick like dojis for example. Are get in de market or are u waiting for the Highest level of the trend reversal stick for example? or maybe something else?

many thanks

Kind regards

Dennis

Hi Steve,

1. Yes, RSI is used on daily charts only.
2. EMA and SMA both are applied only to the shorter time frame - the one you choose to trade with. In my case, I applied them to 3 hour frame.
3. Both EMA and SMA are applied to Close.

Happy trading,
Edward

Edward:

1. I understand that when using the RSI, it is used on the daily chart only; is that correct?

2. I am not sure about the EMA and SMA which I have 2 questions. Are these two moving averages applied to the daily chart or to the shorter term chart such as the 4 hour chart, 5 minute chart etc.?

3. When configuring EMA and SMA, there is a parameter settings which asks whether to apply it to the "close", "open", "high", "low", etc... Which one of these should be chosen when using EMA and SMA?

Thank you for your help.

Steve

Hello Biju,

As per strategy rules we decide on a trend by simply using
EMA and SMA - see the screenshot on the main page:
http://forex-strategies-revealed.com/advanced/fibonacci-trading
green on top – uptrend, red on top - downtrend.

Is it possible for you to send me a screenshot of your chart and the questions you've got about it. It would be easier to understand your concerns and help you out.

Kind regards,
Edward

Hello Sir Edward,

I dont think you know how much you are helping traders like me.Sir I am from India and here we are slowly getting on with electronic trading system.I had a question as I recently started following the charts by your technique 4hours and i can use 3 day maximum but how to find the trend as initial bar needed to find the trend as days keeps changing every next day and so the needed bars can we start from any bar on 3 days please explain.
Thanks a lot
Biju

Hi Eugene,

We use daily RSI suggestions. If it is bearish, then only Short positions are taken.

Regards,
Edward

if the daily RSI is bearish and on the 4 hour chart price retrace above the 75% fib. can we buy? because in that case we are going against the trend. is it safe?

eugene

Hi Larry,

Your report is quite impressive and constitutes a thorough research being done.
I totally agree with you on the definition of primary and secondary movement time frames; and also that there no trades should be taken from 21:00 GMT to 2:00 GMT.
Totally new idea for this system is to use a small profit target, which was interesting to learn about. I think it should work pretty well.
It should be interesting to try your almost scalping technique out, which I'll set the time to do this summer.

Thank you!
Best regards,
Edward