fib. expansion and retrace in forex
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targus,
euro/ buck, buck /cad, cable/ buck, guppy, buck/ yen pairs.
trader since 1975
sp500
an original cowboy from this contract.
in forex........
a .86 retrace or DB or DT with divergence is all you need to focus on
do 10,000 of these trade setups over 30 years and you have arrived.....
this trade works in equity, options, futures et al.
you do not need to look at anything else.
a classic support setup and simple just works.
buck/ cad "full pull" chart pic attached from a diverged DB.
notice the diverged DT at the 5.76 exit door as it runs out of gas on the long side.
cheers,
s
euro/ buck, buck /cad, cable/ buck, guppy, buck/ yen pairs.
trader since 1975
sp500
an original cowboy from this contract.
in forex........
a .86 retrace or DB or DT with divergence is all you need to focus on
do 10,000 of these trade setups over 30 years and you have arrived.....
this trade works in equity, options, futures et al.
you do not need to look at anything else.
a classic support setup and simple just works.
buck/ cad "full pull" chart pic attached from a diverged DB.
notice the diverged DT at the 5.76 exit door as it runs out of gas on the long side.
cheers,
s
start on the left with a DB diverged
follow this chart thru.......
the fib math numbers still got hit and the first market exit door was the 2.62 pivot line
a new DB to re engage the long side in the center of this pic
and a new fib expansion to a 2.62 exit.
a roll n puke trade was next to a fib expansion at the DB
at the end of the day, a DB, fully diverged and started the cycle all over.
s
follow this chart thru.......
the fib math numbers still got hit and the first market exit door was the 2.62 pivot line
a new DB to re engage the long side in the center of this pic
and a new fib expansion to a 2.62 exit.
a roll n puke trade was next to a fib expansion at the DB
at the end of the day, a DB, fully diverged and started the cycle all over.
s
Can you please explain what the .86 value is all about? I googled it and nothing came up. Seems to show up on your charts where 76.4 (or 78.6) would normally show up. Thnx
I notice your stochs are 12,3,6, which is interesting, I use stochs 5,3,3, and macd 12,26,9. The only reason I use a faster stoch is that I read one needs to use this setting for a fast market such as currencies.
For some reason I seem to have adopted a trading method using chart patterns, flag, pennant, 123, gartley etc., or supply/demand.
I am far removed from a trading background, so it is always a pleasure to encounter one who is, I look forward to following you and learning how you trade. At the moment I am long cable, usually I start with the daily t/f and work down to the 4hr to gauge the overall direction, here are my charts on this pair.
For some reason I seem to have adopted a trading method using chart patterns, flag, pennant, 123, gartley etc., or supply/demand.
I am far removed from a trading background, so it is always a pleasure to encounter one who is, I look forward to following you and learning how you trade. At the moment I am long cable, usually I start with the daily t/f and work down to the 4hr to gauge the overall direction, here are my charts on this pair.
targus,
your 1,2,3 is a .86 retrace
the DB after the 3 on you chart is called the " half twist."
so a " one legger with a half twist " in shop talk.
if you add the macd to your chart it will be massively diverged at the DB area.
my macd is not the stock out of the box one nor the ssto.....
this macd has no lag in it.
in every pic i have posted, note the macd histo cross over to positive or negative side of its own 0.00 line running horizontal.
this confirms the direction of price.
for divergence , look at the " length of the histo bar" for strength.
the pic attached has an arrow under the macd.
look how short the histo bar is relative to the first bottom leg.
this is called a " cork under water " setup.
we are running out of sellers and big time....
the ssto crosses lower on the first leg and much higher on the second leg for a long entry.
there is a red trend line showing the massive macd diverge at the bottom.
the red arrow shows how short the macd bars are......
once they change to the north direction, price explodes.
the t3 ssto is very smooth , it is also used for diverge......
always look for a lower cross over on the second leg for a short and the opposite for a long.
the number of positions traded is relative to decades of trading.
2% entry risk of only 25% of your capital with a very, very high success rate still allows more roi per hour than the best CEO job in the country .
you get to live in the same neighbourhood and they never figure out why you have this relaxed lifestyle.............
the fib math is used to exit the trade at 2.6 as the price rolls over.
s
your 1,2,3 is a .86 retrace
the DB after the 3 on you chart is called the " half twist."
so a " one legger with a half twist " in shop talk.
if you add the macd to your chart it will be massively diverged at the DB area.
my macd is not the stock out of the box one nor the ssto.....
this macd has no lag in it.
in every pic i have posted, note the macd histo cross over to positive or negative side of its own 0.00 line running horizontal.
this confirms the direction of price.
for divergence , look at the " length of the histo bar" for strength.
the pic attached has an arrow under the macd.
look how short the histo bar is relative to the first bottom leg.
this is called a " cork under water " setup.
we are running out of sellers and big time....
the ssto crosses lower on the first leg and much higher on the second leg for a long entry.
there is a red trend line showing the massive macd diverge at the bottom.
the red arrow shows how short the macd bars are......
once they change to the north direction, price explodes.
the t3 ssto is very smooth , it is also used for diverge......
always look for a lower cross over on the second leg for a short and the opposite for a long.
the number of positions traded is relative to decades of trading.
2% entry risk of only 25% of your capital with a very, very high success rate still allows more roi per hour than the best CEO job in the country .
you get to live in the same neighbourhood and they never figure out why you have this relaxed lifestyle.............
the fib math is used to exit the trade at 2.6 as the price rolls over.
s
"Can you please explain what the .86 value is all about.........? "
Add the last two numbers to get the next.
1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233..............
i use .86 because it worxs for me.
use what works for you.
it is also a bit further from the .76 et al. as the retrace stops get taken out.
i get filled as they get blown.
it is an area for a price action directional change....
s
Add the last two numbers to get the next.
1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233..............
i use .86 because it worxs for me.
use what works for you.
it is also a bit further from the .76 et al. as the retrace stops get taken out.
i get filled as they get blown.
it is an area for a price action directional change....
s
Interesting thread.....
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