Hi people,
This morning as I was glancing over the different pairs for entry something popped up in my head.
Using fibonacchi levels to determine whether a "low" is a real low or a "high" is a real high.
Here is what I mean.
For practical purposes lets just talk about uptrends for now.
Rule to determine a real "low": If the pullback from a high is equal to or more than 61.8 than it is considered a real "low"
[In an uptrend if the low is real low we can than move our trendline below this low. If this low is a lower low in an uptrend we still move our trendline to this low but we adjust previous point of trendline to a low that is lower than this low.]
For aggressive trading we can go long when 4hr bar closes above 61.8 with our sl below the latest low and our profit target at 127.2
For regular trading we wait untill the price reaches 161.8 with sl below the latest low, our exit is when reverse signal occurs. We can keep moving our sl below real "lows".
I know it might be confusing but I kinda wrote this fast.
p.s. please add any ideas you might have or any problems that you see. tnx.
This morning as I was glancing over the different pairs for entry something popped up in my head.
Using fibonacchi levels to determine whether a "low" is a real low or a "high" is a real high.
Here is what I mean.
For practical purposes lets just talk about uptrends for now.
Rule to determine a real "low": If the pullback from a high is equal to or more than 61.8 than it is considered a real "low"
[In an uptrend if the low is real low we can than move our trendline below this low. If this low is a lower low in an uptrend we still move our trendline to this low but we adjust previous point of trendline to a low that is lower than this low.]
For aggressive trading we can go long when 4hr bar closes above 61.8 with our sl below the latest low and our profit target at 127.2
For regular trading we wait untill the price reaches 161.8 with sl below the latest low, our exit is when reverse signal occurs. We can keep moving our sl below real "lows".
I know it might be confusing but I kinda wrote this fast.
p.s. please add any ideas you might have or any problems that you see. tnx.