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Complex trading system #12 (Fibonacci + trend line confluence)

Hello,
My name is Raja.

Here is a low risk high reward strategy.

It works best on 4H and Daily chart for all currency pairs.

Buy or sell at the confluence of trend line support/resistance and 61.8% or 78.6% fib retracement of the latest swing.

Entry should be strictly in the direction of the long term trend.

Place your stop 20 pip below or above the next fib level.

Trade with three lots. Profit target for the first lot should be twice the risk. When first target is achieved, move the stop to break even and book profit on the second lot at next horizontal supp/res area.

Let run the third lot profit till the breach of trend line or with the help of your favourite indicator to confirm the trend reversal.



http://forex-strategies-revealed.com/


Thank you, Raja.

I'd like to add a screenshot, plus to comment that such confluence trading is also good with Fibs retracement at 50%.
A line graph instead of a commongly used chart graph might be a better choice for spotting important highs and lows to connect trend lines as well as fibs.

trend line + fibs Forex

The green box on the screenshot highlights the area of a trend line + Fibonacci retracement confluence - a potential setup for opening a Long position.

Regards,
Edward

Hey Raja,
Thanks for sharing this idea.

@Edward: Would you be able to have more techniques with fibonacci. Ive seen people trading it and im wow-ed by their statements. This method from Raja is very cool.

Cheers
Rajan

Hi. Is also important to have into consideration the market flow in order to go short or long.
Edna

Hi Rajan and Eden ,
Fibonacci + Trendline Confluence strategy, if used in the direction of the Daily chart trend will result in atleast seven winning trades out of ten.
Enjoy
Raja

i think this is one of the best system i have been using for sometime now and it works like wildfire.The results are out of this world.
Thanks raja for sharing

could you post more pictures of setups?

How do you draw a trendline, is there an automatic trend line draw indi that you can post here. Thanks

I believe an automated tool won't produce the required quality comparing to manual drawing.
Trend lines remain to be more of a subjective tool, a vision/opinion of an individual trader, who at the same time tries to figure out what the majority of big and small players would see and draw on their charts.

The best tool to help you draw same trend lines as other traders have is ZigZag indicator, available on every trading platform.

If you'd prefer an automated tool, use the one from TD trend lines strategy:
http://forex-strategies-revealed.com/mt4/tomdemark-trendlines

Best regards,
Edward