fib. expansion and retrace in forex
- Thread starter shopster
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That's sweet
This is an excellent thread.
I'm sure the OP has enough on his plate and handing out a strategy on a silver platter isn't a top priority i'm sure lol.
I ran something similar to this concept using only pin bars. Works well and it's difficult to screw up unless you really make a good go at it.
Thanks again for the thread Shop. You've done well. Best wishes.
I'm sure the OP has enough on his plate and handing out a strategy on a silver platter isn't a top priority i'm sure lol.
I ran something similar to this concept using only pin bars. Works well and it's difficult to screw up unless you really make a good go at it.
Thanks again for the thread Shop. You've done well. Best wishes.
"a .86 retrace or DB or DT with divergence is all you need to focus on"
Could someone elaborate a little more on the above statement? What is DB and DT; in regards to Fibs, I can see were I can pull a Fib retracement, yet how do you get the levels after the 100% fib run? Is it a Fib extension?
Thanks for any insight!
Dominic
Could someone elaborate a little more on the above statement? What is DB and DT; in regards to Fibs, I can see were I can pull a Fib retracement, yet how do you get the levels after the 100% fib run? Is it a Fib extension?
Thanks for any insight!
Dominic
I'm not here to pick a fight with you Shopster. I really like the thread topic. I just don't like the cryptology, but as you made clear, it's your thread to run as you like, so no problem.
But 1.00 -.86 = .14, you dig?
I think a better explanation would be as follows:
In the short GBP.USD example, the 86% refers to the relationship of the rally/reaction to the first leg of the decline. You would need first to draw the fib tool from the highest high to the low of that initial decline. You would then await price to retrace, according to Shopster, 86% of that initial decline.
Once price retraces to that level. i.e. retraces at least 86% of the initial decline, then, if divergence is present on his indicator, the SHOPSTER would initiate a short position with a stop loss somewhere, presumably, above the recent high.
Now that SHop is short, he erases the fib tool that was drawn from initial high to initial low. He now draws the fib tool anchoring it from that initial low and drawing it up to the new lower high/double top. He sets his profit targets (1.618, 2.618, 3.14, 4.23, 5.76) based upon the fib tool drawn on that second leg.
The confusion you are experiencing is due to the fact that the OP has not explained how he anchors the fib tools. 86% measures the first leg down. That 23.6 that is confusing you is completely irrelevant to the Shop's example. Ignore it. Pretend it is not there.
STEP ONE - First Leg: Draw fib tool from high to low, trade once retrace is >= 86% if divergence is present.
STEP TWO Second Leg: Once the retracement hits 86% of the first leg, remove the fib tool and redraw the tool from low to high. Set profit targets.
How's that sound, teach?
Best Wishes,
Thales
Quote from shopster:
the retrace back to the 0.0 fib position is .86 or the .23 line on a fib expansion.
1.00 - .86 is .23
it can also stop at the .74 or anywhere else it so pleases.....
you dig.....
s
100 - .86 = .14
not .23
Still a little confused...
---
EDIT - I see Thales already noticed it. I didn't notice that post until after I posted mine.
Correct, however you're going to want to understand the mechanics of the market so that you can get an edge and stay with the strength of the direction of the market. The money line is important too because that's a reliable target for the trade. It looks like an upper TF 20 period MA however I could be completely wrong. I may have to reverse engineer that to find out
100 - .86 = .14
not .23
Still a little confused...
glad to see a few are paying attention........
a retrace that does not make it all the way back to a DB or DT is called a " one legged man . "
it must come at least .62 back on the second leg to qualify.....
any thing above that number counts.
don't split hairs
there is no ironclad rule.
it can even go past a DB or DT and diverge on price.
watch the the zero lag
it will give you a clue as to when the "cork under water " is ready to pop the other way.
look at the histogram bars as they come close to crossing over to the other side.
thales, you are close........
welcome aboard.
my job here is to entice and lay the clues.
to all those following this thread.........
your job is to probe and dig out the treasure in small nuggets as they appear.
i only use the one fib tool , the retrace.
depending how you pull it on the pair it will go up or down on the expansion.
edit it and add on the numbers above 100.
here is the list.
1.618 2.0 2.618 3.14 4. 23 5.76
there are a bunch in between, but i do not use them
keep it simple.
if the market price action gets to a 4.2 or 5.7 it is a " full pull..."
at that point you will see diverge usually setting up on the zero lag to have it roll over .
the ssto will also be topping or bottoming out.
the riddle starts to unwind, n'est pas.......?
s
not .23
Still a little confused...
glad to see a few are paying attention........
a retrace that does not make it all the way back to a DB or DT is called a " one legged man . "
it must come at least .62 back on the second leg to qualify.....
any thing above that number counts.
don't split hairs
there is no ironclad rule.
it can even go past a DB or DT and diverge on price.
watch the the zero lag
it will give you a clue as to when the "cork under water " is ready to pop the other way.
look at the histogram bars as they come close to crossing over to the other side.
thales, you are close........
welcome aboard.
my job here is to entice and lay the clues.
to all those following this thread.........
your job is to probe and dig out the treasure in small nuggets as they appear.
i only use the one fib tool , the retrace.
depending how you pull it on the pair it will go up or down on the expansion.
edit it and add on the numbers above 100.
here is the list.
1.618 2.0 2.618 3.14 4. 23 5.76
there are a bunch in between, but i do not use them
keep it simple.
if the market price action gets to a 4.2 or 5.7 it is a " full pull..."
at that point you will see diverge usually setting up on the zero lag to have it roll over .
the ssto will also be topping or bottoming out.
the riddle starts to unwind, n'est pas.......?
s
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