This isn't a holy grail by any means as the title indicates - the thread is dedicated to meat lovers I trade higher timeframes and mainly position trades for 2-14 days. Nevertheless, this is a setup I developed for intraday trades. Next few posts will outline rules etc. Ok, the first chart shows what I call fib zone plotted using previous day close & current day open price. No extensions, just 0-100%. Constructive feedback is welcome. I hope some of you will put it to good use. Cariocas
This chart shows today's action and how the zone using the close & open of previous & today served as support in this case. 2 smas are in place to act as a filter. Cariocas
The following are general entry/exit rules. Will highlight other variations in subsequent posts. For shorts: - Enter when bar is below both sma & fib zone. - Exit @ 2 pts. target from entry - Stop loss: hi of range, or; 2 pts. (risk = reward), or; high of fib zone. Will also go over different scenarios of stoplosses to show when to apply each of the above. The attached chart shows 2 entries on 15min timeframe. As a general rule, the tighter the fibzone the better. In the first entry when a tight zone is on hand the next thing to look for is the hi/low of globex session. So the first entry is the low of Globex which is the safest. with a stoploss placed at hi of fibzone or Globex hi. This is a good risk/reward setup and very ideal. The 2nd entry is exactly the opposite of the first where price is holding above sma & consolidating above fibzone. The entry is the break of hi of 4bars and stoploss is placed at bottom of range/fibzone & sma. Also, this is a very ideal stoploss placement since there's massive support at the same level. Cariocas
This chart shows a wide fibzone range & how to deal with it. I consider wide range fibzones as grade 2 setups & the risk is much higher. However, the 2 pt. stoploss/exit rule applies to capture a potential move. The first entry is based on a pullback. Some of these just run away at the open so it's up to the trader to either enter once the fibzone is breached or wait for pullback - I prefer the latter. Let's see if some can add/refine the setup. Cariocas
Ideal fibzone - very tight range. One can see that 1st entry is break of Globex consolidation low with price clearly below sma and zone. 2nd entry with a lower hi and break of sma and consolidation low. 3rd entry with break of 4bars & sma. Was choppy & that happens. Experience plays a role in trailing some of these entries, especially the ones on the open where price just flies in 1 direction. Again, the 2 pt. rule is there as a base. Anyone out there interested in discussing this setup? Cariocas
Don't you wish all days were like this? Look at how the fibzone repelled price & sma contained the move. The 3 entries/exits were more than ideal. Always consider that if the trade doesn't move in desired direction right away then it'll either chop for a while or one is just paying for information. It's never a loss! Note: For the 1st trade, some might consider entering on break of Globex low & break of sma while still in the zone. The 2pt. stoploss has to be honored. It shouldn't matter if there's an sma crossover as long as price is below both. Will discuss how to trade when price is in the fibzone. Later. Cariocas