like promised here"s my designed method using the fibs
as I promised you past week I will reveal for the first time one of my trading secrets using the fibs level that have a great accuracy of 95% !!! you don't believe me ? read this post , learn it then go test it and come back to me after ;)
in a sort of an educational post I will teach my own method that I designed and tested for months , the method consist using the Fibonacci retracement in a specific way so it gives you the best strong levels to use for your trading !
1- first of all you need to open your chart on 4h time frame , mark on the first 4h candle of the previous week and the last candle of the same previous week. in my example the week started the 19th June so that's where my first 4H candle , and the week ended the 26th June and that's where my last 4H candle is at .
2- get your Fibonacci retracement and place the 100% level at the open price of the first candle of the previous week that you marked , and place the 0% level at the close price of the last candle of the previous week that you marked . I REPEAT the OPEN PRICE of the first candle and the CLOSE PRICE of the last candle ! precision is needed to get as much accuracy as possible !
3- now that you installed you Fib retracement on the chart , it's levels is what you will trade for the current trading week! and for this you need to swap to the 1H time frame.
4- the Fib levels that we use in this method :
>> 0% and 100%.
>> 38.20% ( price rejects more often from this level)
>> 50% , 61.80%, 78.60% ( strong levels that price targets more often)
>> 150% 161.8% ( the twp levels together always form a strong rejection zone).
* other used levels :
>> 261% and 361% ( strong rejection levels )
5- now with the trading rules of this designed method :
>> 0% and 100% are very very strong levels , when broken price will go to the next near level .
>> if price breaks any fib level ( 38.20% , 50%, 61.80% ,78.60%) there is a high chance for it to go to the next level ( example if price breaks above 50% there is a great chance for it to continue and touch 61.80)
>> whenever price touches 38.20% , 150%/161% , 261.80 % , 361% there is a high chance for the price to reject .
in a sort of an educational post I will teach my own method that I designed and tested for months , the method consist using the Fibonacci retracement in a specific way so it gives you the best strong levels to use for your trading !
1- first of all you need to open your chart on 4h time frame , mark on the first 4h candle of the previous week and the last candle of the same previous week. in my example the week started the 19th June so that's where my first 4H candle , and the week ended the 26th June and that's where my last 4H candle is at .
2- get your Fibonacci retracement and place the 100% level at the open price of the first candle of the previous week that you marked , and place the 0% level at the close price of the last candle of the previous week that you marked . I REPEAT the OPEN PRICE of the first candle and the CLOSE PRICE of the last candle ! precision is needed to get as much accuracy as possible !
3- now that you installed you Fib retracement on the chart , it's levels is what you will trade for the current trading week! and for this you need to swap to the 1H time frame.
4- the Fib levels that we use in this method :
>> 0% and 100%.
>> 38.20% ( price rejects more often from this level)
>> 50% , 61.80%, 78.60% ( strong levels that price targets more often)
>> 150% 161.8% ( the twp levels together always form a strong rejection zone).
* other used levels :
>> 261% and 361% ( strong rejection levels )
5- now with the trading rules of this designed method :
>> 0% and 100% are very very strong levels , when broken price will go to the next near level .
>> if price breaks any fib level ( 38.20% , 50%, 61.80% ,78.60%) there is a high chance for it to go to the next level ( example if price breaks above 50% there is a great chance for it to continue and touch 61.80)
>> whenever price touches 38.20% , 150%/161% , 261.80 % , 361% there is a high chance for the price to reject .