Folks, I want to bring on here a very simple strategy.
The basis of this strategy is the use of two traditional tools which are Zigzag and fibonacci.
Sell Rules :
1. Drag Zigzag indicator on the chart and leave default settings for now. Zigzag just helps to identify the swings but any trader should be able to identify the swings with the naked eye.
2. Identity a Low (L) and a High (H). Wait for price to break the low to form a (LL).
3. Draw a fib retracement from the LL to the H.
4. Enter short if price retraces to your desired fib level. I prefer the 78.2.
5. You may use other filters such as Rsi or stochastic
6. The best trades are the ones where:
a. price spent a great deal of time forming the L-H leg
b. there was a lot of consolidation around the H leg.
c. price didn't take too long to return to the fib level. At the same time we don't want too fast a return as that may be institutional buying and a potential trend change.
Note also that for strongly trending markets, price may not often retrace past the 50.0 fib level.
Buy rules are the opposite .
THREAD RULES: Spammers and trolls will be blocked without any warnings .
Please keep your charts and posts central to the core of this strategy.
The basis of this strategy is the use of two traditional tools which are Zigzag and fibonacci.
Sell Rules :
1. Drag Zigzag indicator on the chart and leave default settings for now. Zigzag just helps to identify the swings but any trader should be able to identify the swings with the naked eye.
2. Identity a Low (L) and a High (H). Wait for price to break the low to form a (LL).
3. Draw a fib retracement from the LL to the H.
4. Enter short if price retraces to your desired fib level. I prefer the 78.2.
5. You may use other filters such as Rsi or stochastic
6. The best trades are the ones where:
a. price spent a great deal of time forming the L-H leg
b. there was a lot of consolidation around the H leg.
c. price didn't take too long to return to the fib level. At the same time we don't want too fast a return as that may be institutional buying and a potential trend change.
Note also that for strongly trending markets, price may not often retrace past the 50.0 fib level.
Buy rules are the opposite .
THREAD RULES: Spammers and trolls will be blocked without any warnings .
Please keep your charts and posts central to the core of this strategy.
