I decided to start this thread to keep track of my own trading, to discover the consistency that's necessary to make success trading.
Trading system:
My system of trading relies on price actions especially fibo retracements and fibo expansions.
I also utilize other price actions such as greater lows, lower highs and 123 patterns to help make decisons.
My understanding of fibos are summarized below:
(For simplicity of excuse I utilize up motion. For downward motion it is just the opposite.)
If price respect specific retracement level, it has to respect it is first growth that's 61.8percent level.
That is, if the price split over 0% of this retracement.
At rent the price would spike over the 61.8percent level and shut below.
If the price break over 61.8percent and close over the level, then the price would respect it is 100% amount. It will spike over and close below the level.
If the price break over 100% amount and close over the level, then the price would respect it is 161.8% amount. It will spike over and close below the level.
Trades:
First alternative,
I would promote basket or buy basket in accore with Basket Trading Strategy developed by Trader 101 Julius.
In this scenario I would just draw fibo retracement/expansion on gbp/jpy chart because the gj is always commands anchor position and the most active. The ups/downs of this basket also follows gj.
(The benefit of basket method is that any spike will be counter balanced by the somewhat hedged pairs. The profit made is about the internet bias.
Second advantage is it's the only way I've come across that may bring you more than 2,000 pips in a single day of trading)
Second alternative,
Trade 1 or 2 few ccy pairs.
In this instance you need to draw individual fibo retracement/expansions for each and every ccy pairs.
Activities: (how I do it)
(all in m15 chart)
Primarily I would watch the market and loe retracement.
Then I would draw fibo retracement level and fibo expansion degree.
If the price divide over 0% of those fibo retracement and close over the level, I would take a transaction.
If it doesn't violate the 0%, instead it divide 100% of this retracement, I would delete all of drawings and redraw the fibo retracement/expansion into the contrary direction.
I would close all places when the price just spike over 61.8percent level.
Then I will wait to find out whether the price break over and close above 61.8percent level.
If it does, I will take another trades.
I would subsequently, shut the trade when the price spike over 100 percent level.
Then I will wait to find out whether the price break over and close above 100 percent degree.
If it does, I will take another trades.
I would subsequently, shut the trade when the price spike over 161.8percent level.
After the price has skyrocketed within 161.8%, I would delete all of the fibos drawings.
I would also delete all of drawings, if the price violate the prior expansion amount.
Then I will lookout for retracement again and the cycles above repeat.
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1st chart is example of fibo retracement and fibo growth in actions.
2nd chart is my typical trading installment.
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