03. Determine Landmarks Via Fibonacci & TRSI Archives

Good Strategy For Trading Success


This is a trader question from the Fibonacci Trading Forum.

Vernon says:
What would make the biggest difference to my trading?
Combining the top-down analysis and finding an entry in the lower time
frame based Higher High or Higher Low and TRSI with Fibonacci.

Neal’s reply;

That’s a good strategy!

So, make it happen, find the setup, wait for confirmation, execute the trade, manage it, and exit..

Try to ignore the profit motive for a while. Whether you are trading the TRSI Bounce, TRSI Pop & Drop, TRSI Push, or any other strategy, focus first on keeping the risk within your tolerance. After some experience, you can analyze the results and make revisions to optimize for profits.

-Neal Hughes “FibMaster”.

Vernon says:
I also need suggestions for the following;
Building confidence and trust in the analysis and pulling the trigger
based on the price action, Fibonacci and TRSI.

Neal’s reply;

Confidence requires time and consistency, it needs to develop. Time and experience are part of the recipe, they are necessary ingredients.

There is no way to become confident without following a consistent strategy. Then apply the strategy consistently over many trades, and measure the result. You can speed up the process by analyzing past charts, as well as executing your strategy in live trades.

With experience and consistent diligence, you can develop confidence in your strategy. Start small, with lower risk, then adapt as your confidence builds.

-Neal Hughes “FibMaster”.

Filtering For High Probability Trades


This is a trader question from the Fibonacci Trading Forum.

Vernon says:
What part of your trading do I need to improve?

Finding and choosing the higher probability trade and sitting out on others.

Neal’s reply;

This is a constant challenge, and sometimes even the best looking setups will fail. We have to accept the disappointments, and continue to strive for better performance.

Here is the best way to find optimum trades; Look for trades with solid trend, or significant thrust in your favor. A weak trend, or a trend that is showing fatigue, will cause more frustration and worse results.

With trend in your favor, find strong Fibonacci support/resistance (SK Level) for retracement, and then wait for the move to confirm that Fibonacci Level. Trigger your trade with that confirmation, and look for follow-through momentum in the direction of the trend or thrust. This is the basis of the “TRSI Bounce” trade setup.

Those two basic techniques (trend and Fibonacci Retracement) will help you locate/filter those better trade setups.

-Neal Hughes “FibMaster”.

Simple Trading Strategy Wins


This is a trader question from the Fibonacci Trading Forum.

Vernon says:

Here is one of my biggest trading problems;

With all the different Fiblevels and Support / Resistance zones in the different time frames, I tend to hesitate once these levels are near and therefore need further confirmations.

Once there is confirmation based on price action, there will be nearby SK Fibonacci Support or Resistance, and this make me wait and analyze further and probably miss the trade.

Neal’s reply;

It is important to keep the context of the trade in focus. What is the trigger? What is required to keep you in the trade? What is required to get you out?

If your setup and trigger is good, then the trade is under way until you have reason to exit. If some predicted support/resistance gets in the way, it will get you out. Or if the predicted support resistance is not strong enough, you will remain in the trade. Your trading plan takes care of that.

If the support/resistance level interferes with your setup/trigger, you will not have a trigger, or you will not have a good setup. Then is not a good trade according to your trading plan, so there is no entry.

So, take the trades on appropriate setups, and let your trading plan take over. Keep it that simple, to avoid analysis paralysis. Trust your strategy, trust that your trading plan will get you in and out appropriately.

What I am really saying is that a simple trading strategy will be a winner, instead of over-analysis and complication. Get back to basics, trade your plan.

-Neal (FibMaster’s Fibonacci Trading Course)

Learning Fibonacci Retracements


Here is an email question from a member of the Fibonacci Trading Forum at Daily Forex Charts .com

I need to learn more about Fibonacci levels, how to apply and use them. Where to enter, where to exit.

Neal’s response;

OK, learning the basics of Fibonacci Retracements, Fibonacci Expansions, etc are really easy, FibMaster’s Fibonacci Trading Videos will solve that problem for you.

After that, it comes down to skill and experience. You definitely need to use TRSI with Fibonacci, that will make a big difference. Join our FibMaster Fibonacci Forum webinars, that will help a lot!

-Neal Hughes “FibMaster”

Evaluating multiple Fibonacci Levels


This is a trader question from the Fibonacci Trading Forum.

Hussam says:
What causes you me most difficulty?
Setting the right landmarks on my chart. Example : trading a 60 minute chart on 240 minute trend. First I put SKs and trend lines from Daily and 240 minutes. However, I still have SKs or just Fib levels from my 60 minutes, (a) If I want to go long, I have my 60 min Fibs, SKs (which may coincide with 240min), then the 240 min SKs (resistance) etc…… IF I take each one seriously, I will probably leave the trade. The profit margin may seem small. So, how can rank these landmarks ? or should we just take them as targets ??

Neal responds:
It is important to have the correct Fibonacci levels on your chart, as you have. The challenge is to decide what to do about them! Any retracement, support, resistance, can have an effect on the market, so they all should be treated with respect.

In summary, if one of those levels causes an exit trigger, you get out, otherwise you stay with your trade. We should discuss this in more detail with live examples, in our webinars.

-Neal (FibMaster’s Fibonacci Trading Course)

Too Many Fibonacci Levels


This is a trader question from the Fibonacci Trading Forum.

Martin asks:
I wait for the trigger on the close of the candle , but i find that it might run into another fib level.

Actually there is almost always some Fibonacci level somewhere, that can get in the way. We have to determine which Fibonacci Levels are stronger, which are weaker, and watch price behavior at those levels to make our trading decisions.

We’ll discuss this in a future Fibonacci Trading Forum webinar.

-Neal (FibMaster’s Fibonacci Trading Course)