fib. expansion and retrace in forex

Discussion in 'Forex' started by shopster, Jul 8, 2011.

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  1. In forex, fib. math continues to work.

    whether it is self fufilling , it does not matter.

    the bottom line is your account equity number at the end of the week.

    fib expansion is very powerful when drawn from a .86 retrace or a full DT or DB that has diverged on the second leg setup.

    partial exit doors are at the 1.6, 2.6, and 3.2 fib. numbers

    if price travels to a 4.2 or 5.7 expansion on this setup , it is called a " full pull " and in most cases the final exit door area for the trade.

    move your profit stop up under the market and let price take you out.

    i am using a 3 pip shop bar chart example in all cases.


  2. one legger expansion pic.

    .86 retrace on the second leg then price moved to 5.76

    the full pull........

  3. one legger setup.........
  4. one more.................

    first trade to the left side and to the 3.14 exit door.

    second trade seup in the center of the pic was a .86 retrace of the the entire first trade to the yellow money line.

    in all cases divergence off the zero lag macd is used to confirm
    the bears are running out of gas.......

  5. one leg setup in the trend channel to a full 5.76 full pull

    120 ticks

    notice the zero lag cross over to the positive side on the second leg.

    divergence is the key

    then fib out the bottom setup and watch it run to the top of the auto channel and the 5.76 exit door

    a second trade , short, was done at the top .

    again diverge is on the second leg in the macd and the rad t3 ssto in the bottom window.

  6. short trade.

    one legger , .86 retrace at the red arrow, diverged......

    .86 retrace with diverge and a zero lag cross over to the south side.

    after getting thru the overhead at the yellow money line the zero lag recrossed to the south side.

    exit door at the 5.76 as the market is fully oversold.

    using 3 pip shop bars for the price action.

  7. cable buck , long setup.

    .86 retrace oversold ssto to the yellow money line.

    25 ticks

  8. first trade, left side .86 retrace short.

    second trade was a DT setup, diverged.

    notice the zero lag cross over the the south side as the price continues to puke out the longs.

  9. direction of price is down, from the left side of the pic.

    middle trade, red box...

    a .86 one leg long setup at the .729 line that stalled out
    and formed a .86 retrace top at the money line.

    fibbing this out in the direction of the trend gets you to a '' full pull '' at the 5.76 exit door.

    notice diverge on the zero lag macd in all cases.

    at 5.76 the short side has fully run out of gas and macd is now diverged for the run back north.

  10. aussie buck pair DT short at the shop outer fib. band.

    notice the diverged cross over of the macd histo bars to the south side on the DT leg.

    the dotted vert. line shows no strength in the ssto or the zero lag below.
    both are diverged.

    a DT retrace and divergence to a " full pull " 4.2 or better exit door is the goal in forex pair trading.

    the 4.2 is also at the lower outer shop fib band at the bottom

    sit on your hands and let it run....

    #10     Jul 9, 2011
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