FxGhani Fibonacci Trading Strategy ( Intermediates ). - FxGhani Trading Learning Place


FxGhani Fibonacci Trading Strategy ( Intermediates ).

Time Frame 3 hr. or 4 hr.
Currency: Any
Indicators: Fibonacci Tool, EMA 100-green, SMA 150-red, RSI 14 on a daily
chart.  Fibonacci retracement levels.
Stop Loss: 100 pips but adjust according to the most recent swing high and
Profit Target: No set.

Trading Rules:
Find the closest to the current price wave with a distance from high to Low over 100 pips.
Apply Fibonacci on it no matter if the wave is going up or down, only size matters.

The corridor between 0.382 Fibonacci retracement level and 0.618
retracement on the chart will be called a ¨must channel¨.
Fibonacci retracement level will be numbered always from bottom to top no matter whether it is an up or a down wave. At the bottom we will always have 0.250 and so on and finally on top 0.750 Fibonacci retracement level.

Always enter only according with both:

*EMA and SMA trend suggestion (ex. Green on top-uptrend, red on top-downtrend.

*RSI suggestion (ex. Reading below 50 only sell, above only buy orders).
Now, after applying Fibonacci on a wave bigger than 100 pips we wait for the price to go inside a ¨must channel¨area, at least to make 1 pip into the channel. Only then the next rules will be valid:

*If a full candle (including shadows) is closed below 0.250 Fibonacci retracement, we go short. If we are currently long, it is time to close long position, it is an exit rule as well.

*If a full candle (including shadows) is closed above 0.750 Fibonacci  retracement, we go long. If we are currently short, it is time to close the short position, it is an exit rule as well.

Important: once another wave greater than 100 pips occur, set a new Fibonacci on the new wave. Retracement levels will change and so we will follow new retracements.

That´s it. Stay in trade, resetting Fibonacci with each new wave and moving a stop loss according to the last swings high or low (in simple words the stop loss will always be just below the Fibonacci 0% line) until its time to close the position according to the rules.
This strategy prevents a lot of bad entries, eliminates early exits and allows to staying in trade for a long period of time helping to take everything a current move can offer. 

Traders may close all good winning positions on Friday evening if they prefer not to hold them over a weekend.

FxGhani Fibonacci Trading Strategy ( Intermediates ).

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