Wednesday, December 16th, 2009 at
This is a trader question from the Fibonacci Trading Forum.
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.
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)