Fibonacci Trading - Page 35

Gregory McLeod · #**511** (**permalink**) 11-06-2008, 08:35 AM

Quote:

Originally Posted by Bertie Stemp

Hi again everyone,

Just interested to know what Fib levels everyone uses? I know the most popular are 0.382, 0.500, 0.618 , but i recently read something about "extension levels", these being 0.618, 1.000, 1.618, does anyone use these, im assuming you do, but why and are there any charts people can post to show me their implementation?

Thanks

Bertie

Here is a chart of the AUD/USD. Price moved down from a high of .9859 and retraced up to the 38.2% retracement area of .8329. When we draw our Fibonacci extension, the 161.8% extension target is at .6516. AUD/USD exceeds it by a few hundred pips.

See the attached chart:

Gregory McLeod · #**512** (**permalink**) 11-06-2008, 08:37 AM

Quote:

Originally Posted by cliff

Demo trade ,
Please assist with comments , suggestionsand criticism, Thanks

So your charts can be viewed by other members, I would recommend that you cut and paste your chart in MS Paint.

Gregory McLeod · #**513** (**permalink**) 11-06-2008, 08:43 AM

Quote:

Originally Posted by cliff

Demo trade ,
Please assist with comments , suggestionsand criticism, Thanks

You can get better trade setups from a 60 minute, 4 hour chart, or daily. The price action that is cut off around 11/04 should be included as the base of your Fib lines

cmellon · #**514** (**permalink**) 11-06-2008, 09:35 AM

Quote:

Originally Posted by Gregory McLeod

Here is a chart of the AUD/USD. Price moved down from a high of .9859 and retraced up to the 38.2% retracement area of .8329. When we draw our Fibonacci extension, the 161.8% extension target is at .6516. AUD/USD exceeds it by a few hundred pips.

See the attached chart:

Hi Greg,

Seems from this chart, if you combine it with EW, you are expecting the final wave 5 after wave 4 correction up is finished? If so, what would be your price target for End Of Wave 5?

Gregory McLeod · #**515** (**permalink**) 11-06-2008, 09:53 AM

In my opinion, Wave 4 could take us as high as .8385 some 2000 pips from where we are currently. A wave 5 extension could take us down to .3565 but not for a while. See the weekly chart I have attached. These targets are so far in advanced, I would just trade the trend as it unfolds on a daily chart. If we close above .8385 then the bearish scenario is over and we could see parity at 1.000.

newtrader83 · #**516** (**permalink**) 11-06-2008, 11:27 AM

When drawing Fibonacci retracements in an uptrend, you would draw the line from a swing low to a swing high. Would this be correct?

Gregory McLeod · #**517** (**permalink**) 11-06-2008, 12:33 PM

I used the November 2007 low of 1.5471 as the starting point for my Fibonacci retracement and 2.1096 was my end point.

See my attached chart:

newtrader83 · #**518** (**permalink**) 11-06-2008, 12:37 PM

Quote:

Originally Posted by Gregory McLeod

I used the November 2007 low of 1.5471 as the starting point for my Fibonacci retracement and 2.1096 was my end point.

See my attached chart:

Thanks, I wasn't sure where to start.

Gregory McLeod · #**519** (**permalink**) 11-06-2008, 12:39 PM

Quote:

Originally Posted by newtrader83

Thanks, I wasn't sure where to start.

You are very welcome. You have the right idea.

newtrader83 · #**520** (**permalink**) 11-06-2008, 12:50 PM

Drawing Fib lines is so subjective, the line i drew didn't look right, but the price action seemed to validate the fib levels with bounces off of all of the levels on my chart...

Gregory McLeod · #**521** (**permalink**) 11-06-2008, 12:55 PM

Quote:

Originally Posted by newtrader83

Drawing Fib lines is so subjective, the line i drew didn't look right, but the price action seemed to validate the fib levels with bounces off of all of the levels on my chart...

Choosing any swing low to swing high will give you tradeable opportunities. The support zones will change in number but they will be zones regardless. As traders, we buy support in an uptrend no matter what the number is. If price respects the support line, place a stop below and go long if the trade fits your risk parameters.

newtrader83 · #**522** (**permalink**) 11-06-2008, 01:09 PM

Quote:

Originally Posted by Gregory McLeod

Choosing any swing low to swing high will give you tradeable opportunities. The support zones will change in number but they will be zones regardless. As traders, we buy support in an uptrend no matter what the number is. If price respects the support line, place a stop below and go long if the trade fits your risk parameters.

Thanks Greg, I sent you a message on your profile regarding your email information. I took all of the courses offered by fxcm and I must have deleted the link to the instructors email addresses. Isn't there a forum for former students? Could you provide me with this information?

What do you think about this chart? Would you use this swing high or the on from September 1?

Gregory McLeod · #**523** (**permalink**) 11-06-2008, 01:43 PM

Quote:

Originally Posted by newtrader83

Thanks Greg, I sent you a message on your profile regarding your email information. I took all of the courses offered by fxcm and I must have deleted the link to the instructors email addresses. Isn't there a forum for former students? Could you provide me with this information?

What do you think about this chart? Would you use this swing high or the on from September 1?

I tried to send you a private message but it was refused. You can go on FXCM LIVE chat and ask for the email address or email sales@fxcm.com.

September 1 looks like a good point to use.

newtrader83 · #**524** (**permalink**) 11-06-2008, 01:47 PM

okay i just added you as a friend, maybe your message will work now

Gregory McLeod · #**525** (**permalink**) 11-06-2008, 01:50 PM

I resent it.