MoneyTec Traders Community Forum - View Single Post - what to use to determine how long a position should be held?

4X4X · 09-12-2005, 01:12

Hello Patrick,

Fibs/Fibos/Fibonacci and Pivot Points are both calculated mathematically on pior moves and they form support/resistance for the current one. For intraday trading you can use intraday Fibs and Pivot points. If you draw Fibs on long term chart like weekly, they will give you long term support/resistance and you may discover then that these are the points where the market really resisit to break or if broken it has very high tendency to get the next level.

Fibs ratios (23.6, 38.2, 50, 61.8, 76.4 & 100) are the ratios discovered by an Italian mathimaticain Fibonacci and he found this ratio is found in the growth of many natural events, you may find very detailed info on that on webpages, or visit www.forextradersworld.com there is lot of good info and e-books available on this website.

Pivot points are calcualte using mathematical formula, the main pivot point for today is the high+low+close of yesterday/3. Now, if the market opens above the number that you get from this formula, it has very high tendency to be bullish and going up and vice versa for the lower opening. Other pivot points S1, S2, S3, etc. and R1, R2, R3 are also calculated using mathematical formulae.

Computers have made life easier, you can use the builtin functions of trading platforms to draw Fibs and pivot points on your charts. For pivot point I will post an attachment of MetaTrader 3.83 custom indicator, which when applied to a chart will draw coloured line of all pivot points.

You can also draw trendlines or channels which form the support/resistaince and give you entry/exit points.

MetaTrader is one of the best known charting/trading platform, developed by a Russian company MetaQuotes, if is absolutely free and has one of the best charting capabilities. Most of the traders use MetaTrader for charting and many like to use brokers how have MetaTrader as their trading platform.

In MetaTrader you can easily draw Fibonacci Retracement by first clicking on it button on the tool bar that will change the mouse cursor to Fib drawing tool. If the market is moving UP, you will have to seen last big move from UP to Down and then put you mouse of the top of the last big move and drag to its bottom, it will give you all Fib ratios on your chart in the form you dotten horizontal lines, vice versa for move down .... hope you will not find it too complicated.

09-12-2005, 01:12	#5
4X4X level 3 Join Date: May 2004 Posts: 467 Downloads: 0 Uploads: 0 Rep Power: 0	Re: what to use to determine how long a position should be held? Hello Patrick, Fibs/Fibos/Fibonacci and Pivot Points are both calculated mathematically on pior moves and they form support/resistance for the current one. For intraday trading you can use intraday Fibs and Pivot points. If you draw Fibs on long term chart like weekly, they will give you long term support/resistance and you may discover then that these are the points where the market really resisit to break or if broken it has very high tendency to get the next level. Fibs ratios (23.6, 38.2, 50, 61.8, 76.4 & 100) are the ratios discovered by an Italian mathimaticain Fibonacci and he found this ratio is found in the growth of many natural events, you may find very detailed info on that on webpages, or visit www.forextradersworld.com there is lot of good info and e-books available on this website. Pivot points are calcualte using mathematical formula, the main pivot point for today is the high+low+close of yesterday/3. Now, if the market opens above the number that you get from this formula, it has very high tendency to be bullish and going up and vice versa for the lower opening. Other pivot points S1, S2, S3, etc. and R1, R2, R3 are also calculated using mathematical formulae. Computers have made life easier, you can use the builtin functions of trading platforms to draw Fibs and pivot points on your charts. For pivot point I will post an attachment of MetaTrader 3.83 custom indicator, which when applied to a chart will draw coloured line of all pivot points. You can also draw trendlines or channels which form the support/resistaince and give you entry/exit points. MetaTrader is one of the best known charting/trading platform, developed by a Russian company MetaQuotes, if is absolutely free and has one of the best charting capabilities. Most of the traders use MetaTrader for charting and many like to use brokers how have MetaTrader as their trading platform. In MetaTrader you can easily draw Fibonacci Retracement by first clicking on it button on the tool bar that will change the mouse cursor to Fib drawing tool. If the market is moving UP, you will have to seen last big move from UP to Down and then put you mouse of the top of the last big move and drag to its bottom, it will give you all Fib ratios on your chart in the form you dotten horizontal lines, vice versa for move down .... hope you will not find it too complicated.