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

Hello Edward,
Can u please explain the above strategy with candlestick charts.The trendline in above chart seems to have broken towards downside yet we have taken entry on long.or is it just a spike but the candle closed above trendline?
Cant see things clearly on line chart, hence requesting candlestick chart.
tks n regards
Miraclegirl

Hi Miraclegirl,

we have placed a pending Buy order on the confluence of the trend line and the Fibonacci line. As price approached, it triggered our order, but then spiked a bit lower, which is fine. (We should not worry if we have a stop in place).

Later, as you can see, the market reversed and climbed up.

Regards,
Edward

Hi edward,

can we still trade if candle closed below /above retracement 0.618 level ?

We trade in the direction of a trend, you can say, we look at the trend line and determine which way to trade.

if price breaks below 0.618 level, sit tight and wait for a bounce back (I would place a pending order at 0.50 Fib and wait).
Note that on practice we're rarely given an opportunity to trade an ideal setups where price obeys the levels up to the pip. Allow some margin for an action to unfold, but keep stops in place if the market proves you wrong.

Regards,
Edward

Hello Edward and team,
First of all, a very happy new year to you all...
Was wondering abt the trade mgmt part of this strategy. Raja says open the trade with 3 lots and also, the TP should be atleast twice the risk.so do we book our profits(1st target) at the next fib level or 2 levels later to achive double the target of sl whcih should be 20 pips below the level of signal fib.
will it be possible to put up some charts to pinpoint entries and targets if that is nt too much of hassle?
Thanks a ton for yr website and guidence
MG

me again!
Also should we look at candlestick patterns at confluencing levels? what are the entry criteria?
MG

Thank you MG,

We also wish you and all traders a wonderful and prosperous year!

According to Raja, Stop loss = 20 pips,
thus:

1st order profit target = 40 pips.
Move SL to breakeven.

2st order profit target = next/nearest support/resistance level. This one you should be able to identify yourself. If you at least put up fractals or a zigzag indicator, they'll tell you where the next S/R level is. Also if you have any round price numbers coming up (1.2300, 1.4500 etc etc), this qualifies as S/R level as well.

3rd order profit target = when a trend line is breached; or when your favorite indicator (should be one of the trend following indicators for the purpose of staying in a trend as long a possible) suggests a reversal.

Should we look at candlestick patterns at confluence levels? Not quite this time, because the point of entry is known beforehand, and so the pending orders are placed there waiting to be triggered without any prior confirmation.

You can, however, seek confirmation afterward by using, for example, the patterns/approach suggested in this strategy:
http://forex-strategies-revealed.com/teodosi-simple-system

Best regards,
Edward

Hello Edward, can you please show me how the entry works?I mean where do we set our pending order?