1. Fibonacci Support & Resistance Archives

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”