Tuesday, March 31, 2009
Woke up at 8am, missed the Force 5 sell signal, but entered after it retraced. Nice short, TP at Monday fib level. In the H4 chart, EU showing it is continuing its downtrend after the gap filling yesterday and pullback to 38% fibo of the last week's swing low. Next support will be at 1.3100.
Today's strong resistance is at the confluence of Daily Open, Daily Pivot and 50% Fibo of previous day high low - 1.3255 area. Next Resistance would be at 1.3280 area with the confluence of Monday's High and Previous day 38% Fibo.
Monday, March 30, 2009
Sunday, March 29, 2009
Saturday, March 28, 2009
The price reached a low of 1.3256. The successful test led to a move higher. The price peaked at 1.3298. The lows seem to be in place for the day and another move down will likely find profit taking buyers. Note however, that a move below the 1.3248 level should not be faded. A move higher would find resistance at the 1.3315-1.3323 level.
Next support at 1.3100 50% Fibo.
Friday, March 27, 2009
Thursday, March 26, 2009
Wednesday, March 25, 2009
Tuesday, March 24, 2009
1:43 am - Bought USD100 for my Paypal account through my friend.
2:43 am - My USD100 has been credited to my FXTrade Account. Current balance:USD96.80. USD3.20 as Paypal Fees.
I will start live on Oanda next week to try its trading platform. Paypal funding fast and efficient.
Sky shared his personal trading experience with us, a really helpful and Awesome mentor to me!
Tomorow, Me aka Fibo Dido will be testing Fibo Convergence Technique and Fibo Projections.
Had my Oanda account approved, will try using it, 0.9 pips spread on EUR/USD.
Monday, March 23, 2009
Fibonacci Retracements are probability points where a currency, or stock will "bounce back" to, after a large move, and then continue in the original direction. Think of Retracements in terms of Newton's Laws of Motion: "For every action there is an equal and opposite reaction."
Fibonacci in Forex - The Self Fulfilling Prophecy
All of the magical math in the world will never make Fibonacci retracements true 100% of the time. Period. Thus, a little common sense goes a long way when using any type of mathematical, or technical indicator to trade from. If the market is showing something different than the indicator, enough people believe in something different that the indicator is wrong. Fibonacci retracements are only good so long as enough people are watching and acting on the same information that the collective whole makes the occurrence a self-fulfilling prophecy. What I'm saying is that even if you've opened a trade based on Fibonacci
With the aforementioned in mind, Fibonacci Retracements work on both short and long-term time frames for all types of traders. For this article, we will only look at short-term trading with 4-hour charts.
First, before we even consider a Fibonacci retracements, you need to be able to spot when a move has occurred that would warrant using Fibonacci Retracements. This can be as simple as looking at a chart, and visually seeing that a large move has transpired - and capitulated. What I mean by this is, if when looking at a chart you're expecting to see empirical proof that a move has stalled, you will never be able to do so. You will see some signs, like MACD or Stochastics bottoming out, or a candlestick pattern like a hammer bottom, but you will never know for sure. One way to have a slight bit of assurance though, is to look for candlestick confirmation, something I recently covered in my article Why Confirmation Counts.
Regardless, only countless hours of pouring over charts will give you 'the feel'. Once you are able to infer a move is over, you can begin to apply Fibonacci retracements for profit targets points if you are trying to trade the rebound, or for new entries, if you are waiting to get back into the currency, for a continued move in the same direction, as the previous 'large move.'
Sunday, March 22, 2009
Friday, March 20, 2009
Thursday, March 19, 2009
Wednesday, March 18, 2009
Tuesday, March 17, 2009
Monday, March 16, 2009
Saturday, March 14, 2009
What is FX Options?
Forex Options allow you to customize your options including payout amounts, barrier prices and expiration dates. These customizable features put you in full control of your risk. Depending on the option that you select, as long as the criteria behind your barrier prices are met, you will receive your payoff amount. If not, all you can lose is your predetermined option premium.
SPOT options allow you many choices:
- Standard options.
- One-touch SPOT – You receive a payout if the price touches a certain level.
- No-touch SPOT – You receive a payout if the price doesn't touch a certain level.
- Digital SPOT – You receive a payout if the price is above or below a certain level.
- Double one-touch SPOT – You receive a payout if the price touches one of two set levels.
- Double no-touch SPOT – You receive a payout if the price doesn't touch any of the two set levels.
This is called gambling!!
Trading the Price Action
Real money move PA Pattern (Staircase)
Shorts are holding onto position expecting lower levels; move likely to have long term impact.
Speculative Hot Money move
Sharp one sided move followed by slow retracement of the entire move. Typical speculative PA. Short term traders go for quick profits, long term effect not likely.
New indicator for Force system in testing period
Starting next week i will incorporate a single S/R line in my charts where Forex Dealers use.
I will test its efficacy and to know whether it is self fulfilling.
Hope this single S/R line will help enhance the Force system.
First check whether its at a Support/Resistance level.
Wait for a Double Top/Double Bottom.
If there is no DT/DB?
Robdee:I agree doubles forming on S/R levels are easy to see and easy to trade. What do we do when there is no double ? We have to look for trendline or fibo (tests, retests, breaks, fake breaks, bounces, rejects) that kind of thing, a lot trickier to get right imo. The good news is the 5min chart is typically rather good for "clear open V shaped doubles" that you cannot see on higher TFs.