FX_IDC:ZMWCHF ZAMBIAN KWACHA / SWISS FRANC
My toolbox is a list of technical tools that I implement in my strategies. Each of these technical tools can be used separately or together depending on the strategy, understanding the purpose of each tool and knowing how to apply them within the market is crucial to their accuracy. Below is how I personally apply these technicol tools within my toolbox.
- Fibonacci Retracement: After price makes an impulse move I use fibonacci retracements to find levels that price can end the retracement and continue back into the direction of the overall trend. The levels I use .386 .50 .764 .786 and .886 percent levels. In a strong trend I Look for price to at least retrace .386 percent of the impulse movie. Many times different triangle patterns will form around this level. The .50 and .618 I like to consider Reasonable retracement levels of the overall trend. The .764 .786 and .886 I like to use on a type of 1, 2 ,3 reversal where price makes a strong impulse move against the trend (A retracement) on this movie is where I draw the fibonacci retracement looking for price not to make a new high or low (continue trend) but rather reverse at the .764 .786 or the .886 percent level.
- Fibonacci Expansion: After price makes an impulse move and a retracement or consolidation, I then use a fibonacci expansion to find potential targets, where the next impulse move might end. Levels I use .618 - 1.00 and 1.618 percent levels. Note that a 100 percent expansion is an equal mashered move of the first impulse.
- Andrew's pitchfork: I Use andrew's to find the slope of price. The I use as a gauge to the strength of that slope. If price is trading in a clear andrews (at least 3 touches as support and/or resistance) and if price is trading below the then I consider it to be a weaker slop then if price was trading above the . these slope lines can act as .
- Simple ( ): I only use the 100 and 200 DAY on a as passable support or resistance. Also to provide a longer term directional bias. If the 100 day MA Is above the 200 and price is above both then a quick longer term bios will be and visa versa if the 100 day MA is below the 200 and price is below both then the longer term bios is . The MA cross I would consider as a change or pasibol change in the overall trend.
- Relative Strength ( ): I use ( ) as a gauge of and strength of the market. Also I use as a trigger into a trade in certain strategies. I scale my where I can see the 60 and 40 levels and use a 20 period instead of the default 14. I look at 5 levels on the - 70, 60, 50, 40 and 30. If is above 70 its strong . If Above 60 but doesn't pierce 70 . If bouncing from 60 to 40 I consider that a range. and visa versa for , If is below 30, strong . If below 40 but can't pierse below 30 . Note I like to see a 40 hold on a retracement in a uptrend and 60 hold on a retracement in a downtrend. I also watch for divergence as an indication of a reversal and sometimes use trend lines on the for a trigger into a trade. I do this only on a lower time frame 5 or 15 min.
Hello, I do not look at time when drawing a fib retracement rather I want to see an impulse move (consecutive bullish or bearish candles) On a bullish impulse I pick the low and draw my retracement to the high. On a bearish impulse I would pick the high and draw the fib retracement to the low. This can be done on any time frame chart. I also draw fib retracements for the entire length of a trend so I draw from low to high on a bull trend and high to low on a bear trend. You could somewhat use time in this manner for instance If an asset made a low in May and a high at the end of Jun, you could say that you drawed a fib retracement from the low in May to the high of Jun and we are in july now at the 50% retracement, something like that. Look for the highs and lows of trends and impulse moves. Hope this was helpful and thank you for the likes. Happy Trading..