If you were trading fib breakouts today, you would have used 905. After the high at 909, then a dip below 23.6% or 905 sets that up as the new breakout level. You trade that till you get burned and then move down to trading long breakouts at 38.2% or 903. Or you can redraw the high and start with a new 0% line.Quote from Breakout:
Damn!...two more 61.8's and a scratch .50. That's it, I'm going
Fibb. He's the man!
Fun with Fibbonacci Revisited
- Thread starter profitseer
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I deleted my post.
The posts I usually delete bash other members, stray off-topic, or contain obviously inappropriate vulgarity.
So if I deleted a post of yours for one of those three reasons, I don't apologize. But if I deleted a post that was just one of your usually humorous one's that did not fall into the aforementioned policies, I do apologize, and I was wrong.
Wisecracks are always welcome. Just not inappropriately vulgar, member-bashing, off-topic ones.
The posts I usually delete bash other members, stray off-topic, or contain obviously inappropriate vulgarity.
So if I deleted a post of yours for one of those three reasons, I don't apologize. But if I deleted a post that was just one of your usually humorous one's that did not fall into the aforementioned policies, I do apologize, and I was wrong.
Wisecracks are always welcome. Just not inappropriately vulgar, member-bashing, off-topic ones.
It's more like 905.9 something on my chart. At any rate, it keeps you out of all that crap up there at 910. Or if you are in there, you are long from 905-906.
So to get in, once the retracement is broken, you just set a stop at 23.6% and hope foe the best. You need enough money to keep you in below 38.2% or use tight stops and keep trying.
I got burned really bad on this not too long ago, so I haven't tried it since. I got burned because it was not in keeping with the scalping I was doing. So I had all these small scalping trades, and then this one big loser breakout trade and it messed my whole week up.
Quote from wally_:
Tell me something I don't know yet. Two easy 4's today on Fib pullbacks. Don't talk so loud, the magic may stop working and what's even worse someone may start a thread 'Keeping Fibbonacci simple'.
I don't think you have to worry wally...
This has been workingsince Leo figured it out 800 years ago and it'll still be working
800 years from now when you and I are long gone.
Anyway, I've always believed the the reason most traders fail isn't because they don't have some secret method, it's because they cut their profits to soon.
I would be willing to bet that your typical trader averages something around a 1:1 profit loss ratio. How many times have you put on a trade, got out for a small profit and then a hour later said..."damn, if I had only held on!"
Here's a nice link if you want to read up on leo.
www-gap.dcs.st-and.ac.uk/~history/Mathematicians/Fibonacci.html
Well I wish I knew how to delete posts. I've got a whole bunch of them I posted that I wish I could delete. Most of them have something to do with a great new way to make money.Quote from inandlong:
I deleted my post.
The posts I usually delete bash other members, stray off-topic, or contain obviously inappropriate vulgarity.
So if I deleted a post of yours for one of those three reasons, I don't apologize. But if I deleted a post that was just one of your usually humorous one's that did not fall into the aforementioned policies, I do apologize, and I was wrong.
Wisecracks are always welcome. Just not inappropriately vulgar, member-bashing, off-topic ones.
That's a pretty interesting observation. In fact, I keep my stop-losses pretty liberal, but I thought that I was an exception. I guess you are the only other guy on this board who adheres to this kind of thinking.
No, I am not afraid that it will stop working. In fact, I have mentioned these things several times on this board with not much success, so I am not afraid I will convert too many for this to stop working.
But, I am afraid that it may get 'simplified'
and then no-one will ever remember what it was originally about. Thanks for the link to Uncle Leo, was he Jerry Seinfeld's relative?
breakout, Here's something I was thinking about for daytraders.Quote from Breakout:
I don't think you have to worry wally...
since Leo figured it out 800 years ago and it'll still be working
800 years from now when you and I are long gone.
Anyway, I've always believed the the reason most traders fail isn't because they don't have some secret method, it's because they cut their losses to soon.
I would be willing to bet that your typical trader averages something around a 1:1 profit loss ratio. How many times have you put on a trade, got out for a small profit and then a hour later said..."damn, if I had only held on!"
Here's a nice link if you want to read up on leo.
www-gap.dcs.st-and.ac.uk/~history/Mathematicians/Fibonacci.html
Your first trade is 1:1 and you hit. Now is your second trade 1:1? Or since you are already up 1, does that make it 1:0, and if you hit again, is the third trade (since you are up 2) now 1:-1?
But to answer your question, of how many times that you exited at a small profit could you have re entered same trade at a better price? My guess is about 99% of the time.
And many times I re enter at the same price. I put it on and say, "Wasn't I just long here a few minute ago?"