SIMPLE FIBONACCI ENTRY MODEL YOU CAN USE TO MAINTAIN PROFITABILITY (This thread will captivate you)
I used this simple method to follow the CPI news on GBPUSD
A thread
I used this simple method to follow the CPI news on GBPUSD
A thread
Many people actually started learning the basic side of forex and left it for some complicated names only to still remain unprofitable. Sadly, many times, these simple things work as long as you have your emotions and psychology in its right frame
Fibonacci retracement is still one of the most effective trading tools that ever existed. Why? because price must created a discount and premium level before continuing its movement. Giving more folks time to join a trend
Calculating a trend is where fibonacci comes in. Look at the image below. That is a simple Fib.
You can with this seek to check where price is retracing into to continue with the trend.
In most cases, we take our continuation entry from 61.8% fib level.
You can with this seek to check where price is retracing into to continue with the trend.
In most cases, we take our continuation entry from 61.8% fib level.
For a downtrend, a pullback is when price goes higher then, falls back down to continue the trend. In this case, we draw our Fib tool from the swing high point to the swing low point then wait for a retracement into 50%-78.6% to pick an entry
It is vice versa for an uptrend. Check image below.
You draw the fib tool from the swing low point to the swing high point to calculate how deep it will go in discount before you can continue buying price.
This should not be difficult to grab.
You draw the fib tool from the swing low point to the swing high point to calculate how deep it will go in discount before you can continue buying price.
This should not be difficult to grab.
If you backtest this on most pairs on the H1 TF, you will realize that in a month, you should have 2-4 good trades. Just that some of us dont just love to swing.
However, with your Fib entry, you want to know where you can take your profits right?
That brings us to fib extension
However, with your Fib entry, you want to know where you can take your profits right?
That brings us to fib extension
The big boys that trade the D and W timeframes have targets for their trades when they use the fib tool to get a trade. Mostly, the TP level is at -27% fib level & sometimes, the -68% fib levels depending on structure
See below (weekly TF)
See below (weekly TF)
If you took that trade on the weekly timeframe, it is easy to realize that the big boys will not TP until they hit the -27% fib level.
See image below
Price hit TP, crossed it, then ensured it closed above TP level
See image below
Price hit TP, crossed it, then ensured it closed above TP level
With the last illustrations, the fib extensions can work on even smaller time frames but you must have good knowledge of market structure. See my full Fibonacci retracement settings below
But then, if we are on smaller time frames, we have other fib entry levels asides these
But then, if we are on smaller time frames, we have other fib entry levels asides these
These levels have been modified over time. Trust me, people have several ways of using the fib numbers to get an entry but the one that has worked for me are 70.50%, 71%, 79% apart from the regular 61.8% or 78.6%. These levels many times align with imbalances, OB, breaker blocks
You only simply follow market structure, direction and other confluences you have known.
On my M15, I had been watching and trading price to buy into the black line above or the the screen area (intentionally not stating the price) & price was trading at the yellow circle
On my M15, I had been watching and trading price to buy into the black line above or the the screen area (intentionally not stating the price) & price was trading at the yellow circle
So, I went to the M5 TF to ascertain what price would probably do with CPI considering other economic data that I had seen in my study.
Observe how price had pushed up A, retraced and gave us a B, retraced and gave us a C
All I did was calculate the retracement of C
Observe how price had pushed up A, retraced and gave us a B, retraced and gave us a C
All I did was calculate the retracement of C
It fell nicely on my 71% fib level and one of my extensions (-68%) was my TP1, my first target was my TP2, and the last green area zone was the TP3.
You can join my FREE Telegram channel (linktree in bio) to see the proof of this trade
You can join my FREE Telegram channel (linktree in bio) to see the proof of this trade
Hey! it is not complicated. It only requires your time to go back to your charts and test it out.
The summary here is, on the smaller timeframes, prioritize Fib entry levels between 61.8% to 78.6% (Those 70%, 71%,etc) work. Just look out for what they confluence with
The summary here is, on the smaller timeframes, prioritize Fib entry levels between 61.8% to 78.6% (Those 70%, 71%,etc) work. Just look out for what they confluence with
That my fib entry made a lot of sense to me because it had a confluence with an M5 FVG. See below.
I know you have learned so much already from this thread. I expect you to keep it simple next week and go kill the market with some blues.
You might consider joining my FREE Telegram channel and following me on all my socials. Just click on the linktree link in my bio
You might consider joining my FREE Telegram channel and following me on all my socials. Just click on the linktree link in my bio
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