Complex trading system #5 (Fibonacci trading)
Submitted by Edward Revy on June 30, 2007 - 13:27.
Traders were asking to post some strategies that will work on smaller time frames.
Here is one very nice trading system that can be worth your attention.
When a trader chooses to use small time frames (like 10 min, 15 min, 30 min even 1 hour) risks to be wrong are always higher than with larger time frames.
Therefore, it is very important to have a really good Forex trading system that can advise on entries with high chances to win and what's more important it should be able to tell exactly where to exit without need to constantly monitor the price.
Read entire post >>>
Hello Edward
wht do you mean by 5 before wma did you mean 5 period
thanks
jack
Yes, Jack
that's the way I like to write it: 5WMA and WMA5 are the same thing - both mean 5 period WMA.
Regards,
Edward
Hi Edward, may-b someone asked you before so i apologize if the question was already answered. first of all I have to thank you and i cant express myself enough to do that. I was on one really expensive seminar about forex and the main subject was of course Fibonacci. I have to give you great compliments about your work and the way you teach us here, i very
appreciate what you are telling to us because i know a lot of ppl that are selling this
knowledge and believe me the price is not low and because of that, it makes me even more appreciate your work because of knowing it your giving it away for free :)
So to my question, can we use 15WMA on timeframe 15min ? Or is there something else to help us filter out the false trades, like to avoid trades when trend is about to change?
Regards, Miha
Thank you, Miha
I haven't tried 15 WMA on 15min TF, it may filter some additional trades, I'm not sure.
I think at this point you can take the main concept and perform further testing with various indicator settings.
Regarding filters for a changing trend, consider reviewing the topics of Divergence trading, market Volume spikes and Elliott waves. Each topic is reasonably difficult, but this is where the power of predicting reversals is concentrated.
Something less complex could be found probably among custom Forex indicators, for example, you can try to figure out the benefits for this method (if any, of course) from using additionally:
Heiken_Ashi_Smoothed.mq4
wellxAMA.mq4
VininI_Cyber_Cycle.mq4
Best regards,
Edward
Hi Edward,
This system works great. In the past I only traded de short timeframes 5 min, but continuing monitoring is not an easy job to do. I prefer now the larger timeframes with this strategie. I use it on 2 hours and 20 ema to look for the trend. I have less fals signales now. The last few months I only traded USD-YEN with this strategie and get some good results. I have have studyd all pairs with YEN and it looks like the fibonacci system works great with all pairs with the YEN in it. But would it be wise to trade two or three pairs at the same time with the YEN in it? for example USD/YEN and GBP-YEN?
thank you
Kind regards
Dennis
Ni Dennis,
you've made good observation and I agree with you about favoring /JPY pairs.
It wouldn't be, however, efficient to go in with two /JPY based pairs.
Instead have a look also at EURGBP, EURCHF and USDCAD alternatives.
Regards,
Edward
good fibonacci system
Hi Edward,
Thank you for the sharing the strategy and all your support provided through Q&A. I have a question for you to maximise my trading. Can you detail how Stop losses should be trailed/managed with a position in profit. I know initially the stop loss is placed 4-5 pips above the 61.8% Fib Retracement level for a (short), and 4-5 pips below the 61.8% Fib Retracement level for a (long), but can you detail when to amend the Stop Loss throughout the life cycle of the position.
Thanks again!
Kiran
Post new comment