Technology
Finance
Investment
Technical Analysis
Trading
Day Trading
Algorithmic Trading
Fibonacci Trading
High Frequency Trading
Fibonacci Day Trading Strategy Thread ✏️
Algorithmic Trading
Fibonacci works because powerful computer programs use the Fibonacci Sequence to transact large numbers of orders in fractions of a second. In short, we want to trade with high frequency algorithms and Fibonacci allows us to do that.
Fibonacci works because powerful computer programs use the Fibonacci Sequence to transact large numbers of orders in fractions of a second. In short, we want to trade with high frequency algorithms and Fibonacci allows us to do that.
Impulsive & Corrective Waves
An impulsive wave occurs when the market makes a strong move in one direction and covers a large distance in a short period of time. Corrective waves occur against the larger impulsive wave and are countertrend but shorter.
An impulsive wave occurs when the market makes a strong move in one direction and covers a large distance in a short period of time. Corrective waves occur against the larger impulsive wave and are countertrend but shorter.
As a Fibonacci trader, entries are based on the completion of an impulsive wave in one direction. Once the impulsive wave has completed, we are looking for an entry in the Golden Zone in the direction of the larger impulsive wave trend. More on this soon.
Fibonacci Golden Zone
The Fibonacci Golden Zone occurs in the Corrective Wave after the completion of a large Impulsive Wave. Once the impulsive wave has completed, we utilize the Fibonacci tool to draw the swing low to swing high in an uptrend.
The Fibonacci Golden Zone occurs in the Corrective Wave after the completion of a large Impulsive Wave. Once the impulsive wave has completed, we utilize the Fibonacci tool to draw the swing low to swing high in an uptrend.
As pictured, the swing low to high presents us with the Fibonacci Golden Zone which consists of the .5, .618, and .786 retracement levels. With the impulsive wave HIGHER, we are looking for calls in this zone.
In this next example, the direct inverse is shown. We have established lower highs on the day indicating a downtrend. We identify an impulsive wave lower and draw our fibonacci tool this time from swing high to swing low looking for puts in the Golden Zone.
Stop Losses
No strategy is perfect. When entering in the Golden Zone, our stop loss is if our swing high/low is broken.
In calls, if the swing low is broken, you exit.
In puts, if the swing high is broken, you exit.
No strategy is perfect. When entering in the Golden Zone, our stop loss is if our swing high/low is broken.
In calls, if the swing low is broken, you exit.
In puts, if the swing high is broken, you exit.
This thread is very high level and only intended to show the basic fundamentals of the strategy. To learn more, I recommend following @TradingWarz and watching his YouTube video below where he covers the strategy from start to finish.
youtube.com
youtube.com
Loading suggestions...