they are fib measurements taken from different abc swings. some of them are in the daily initial abc swing that begins a trend. some are more recent swings in the 4h tf. i look if the levels get respected. = open and closes / wicks are in line or close the fibs. if not i redraw them. i know there's a bunch of em. cuz i like them to cluster.
how i use the long term fib to anticipate possible price action scenarios, = plot fibs abc move that starts a trend. 38.2 retracement target 138.2, 50 target 138.2/ 161.8 61.8 target 161.8, 78.6& 88.6 target 0.0 fib if price breaks and retests 0.0 target 161.8 extension.
138.2 extension counter trend trade target back to 0.0 fib, 161.8 ex target counter to 118.0 / 0.0.
if price goes beyond 161.8 and going counter trend, skip one extension and target the next lower extension. ex price went to 261.8 entered expecting price to move lower to 200.0 skippng 224.0. treat the skipped extension as midpoint.
i also colour code the measurement line of the fibs the ones you dont see are the ultra longterm daily fibs plotted in the daily chart.
to put it simply look if my indicators turn giving me a bias. if they do ill look to see if price has broken out w a close above a cluster, then ill simply put a pending order on the nearest cluster of s/r relative the break out and set my stop on a volatility basis, that's it.
hope that helps.
@nopi, how far i am from the truth if i say that your strategy is to: wait for a strong (momentum) candle in direction (lets say Bullish), then wait for a corrective move down (best if ABCD, but not mandatory) and when ADX and stoch (both) cross up on lower timeframe enter LONG.
if you wait for AB=CD correction this means you trade something like AB=CD pattern or Gartley pattern
close Mr. Kor. i really dont use market geometry but you're right that if the momentum is there ill trade a bit off point c to point d extension when all conditions are ripe for a trending move. if not just looking for a 2:1 on oscillation trades. my entries normally are candle pattern break out retest. so w/in a series of 2-3 1h or 4h candles an entry should be produced.
regarding indis way i use em.
Daily ADX + 30, RSI + 50, OSMA +0.0001 = look for long entries. candle pattern and confirm with lower tf osma.
daily ADX + 30, RSI -50, OSMA -0.0001 = look for any reasons to short confirm with lower tf OSMA printing lower bars.
DAily ADX + 30, RSI + reading, OSMA - reading. = use daiy RSI as filter for bias this means to me that there is a deep discount move look to enter based on daily bias and shoot for a pullback to extension move.
Daily ADX -30 = look at 4h stochs = 4h cross dictates my bias/ if KD line is still far apart and price has moved in my favour ill look for an entry w/ that bias in the 1h or 4h tf and ill chase the trade if its still early enough to get a 2:1.
hope that's clear
Last edited by nopi240; 04-17-2012 at 06:02 PM.
Last edited by nopi240; 09-24-2012 at 06:55 PM.
quick one on cad
Last edited by nopi240; 11-19-2012 at 02:39 PM.
quick eur long
Last edited by nopi240; 11-19-2012 at 03:05 PM.
Last edited by nopi240; 11-21-2012 at 12:56 PM.
5 min trade
gu counter trend