Allow Your Trading Plan To Succeed
This is a trader question from the Fibonacci Trading Forum.
Vernon says:
I have the most difficulty with over analysis and Support/Resistance Zones that challenges me when it’s time to pull the trigger.
Neal’s reply;
The real problem is that you can’t catch any fish if you don’t put your hook into the water. If too much analysis stops you from trading, you are guaranteed zero success.
Sometimes it helps to step back and simplify. See my reply about finding high probability trades. Then make the decision to take the trade.
Let your trading plan work for you. Take the trades that match your trading plan. If you don’t trust the plan, then focus instead on making a plan that you can trust.
-Neal Hughes “FibMaster”.
Filed under: 2. Determine Entry & Exit Triggers • 3. Trading Plan - Notes • 4. Over-analysis
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I have found the Fibonacci retracements DO have a provable statistical edge: http://www.myforexdot.org.uk/trading-fibonacci-retracements-II.html
This, I believe, is more evidence that Fibonacci retracement levels do have some statistical significance and that the market price is likely to bounce off them. It should be noted however that so far I have only tested this on very large time frames. In these experiments the highs and lows have formed over several months or more and the test to see which levels were hit was done over the proceeding 200 trading days which is about a year.
Nevertheless, I hope this information proves to be useful to someone.