clarification needed on trading with fibs

[DaveB]

Cheers Mick clear with projections now. How do drawing retracement levels differ then? Is that the opposite way round?

Foamgod when you say draw left to right, are you saying that by dragging the fibs from left to right there is no need to reverse the fibs for up/down trends?

Just wanna be clear, you guys have been a big help.

[foamgod]

Originally Posted by DaveB

Cheers Mick clear with projections now. How do drawing retracement levels differ then? Is that the opposite way round?

Foamgod when you say draw left to right, are you saying that by dragging the fibs from left to right there is no need to reverse the fibs for up/down trends?

Just wanna be clear, you guys have been a big help.

Well I am no expert on fibo.. I think I would do better keeping my mouth shut and waiting for Mick to answer you.

[MickMason]

Originally Posted by DaveB

How do drawing retracement levels differ then? Is that the opposite way round?

Whoa, I think you need to get a basic understanding of the tool you're trying to use!

I just found the link I was looking for (I lost all my favorites a while back) for another forum member, it's a free email newsletter and from memory gives a good introduction to trading Fibonacci levels. I'm still trying to find the link for a great flash movie on trading fibs, it had some really good examples, anyway here's the newsletter link to be getting on with......

http://www.fibonacci-retracements.com/


Mick

[foamgod]

Interesting, I just signed up. What does that guy get?

[MickMason]

Originally Posted by foamgod

Interesting, I just signed up. What does that guy get?

I think he gets something from visits anyone makes to the links he sends in some of the newsletters, he doesn't try to sell you anything himself though, it's more 'you might find this useful' type thing.

[foamgod]

I hope he is trading successfully with fibo himself! :P

[DaveB]

Mick, absolutely chuffed with that link, thanks. The link has most of the basic stuff I need to know. Just browsing through his web page has given me an understanding of fib retracements and confirmed what you have said about projections. Signed up for the news letter which should be useful by the sounds of what he has to say. The calculator should be a useful tool to have as well.

From my understanding so far, using candle patterns to confirm fib retracements/bounces is useful. Are there any other indicators specific to using fib trading?

eg like using the 1hr RSI as a filter, trading only long trades when the RSI is above the 50 level and short trades and when the RSI is below the 50 level on the day?

Really gettin into this

[MickMason]

Originally Posted by DaveB

From my understanding so far, using candle patterns to confirm fib retracements/bounces is useful. Are there any other indicators specific to using fib trading?

eg like using the 1hr RSI as a filter, trading only long trades when the RSI is above the 50 level and short trades and when the RSI is below the 50 level on the day?

Really gettin into this

I hope you find it useful, from what I remember it was about the most straightforward introduction to Fibs I've come across, even though he doesn't trade FX.

I'm not going to suggest any particular supporting indicator because I use Fibs in their most basic form on a bar chart, I'll leave it up to you to find something that you are comfortable with and which will give the confidence to place trades.

Cheers

Mick