Apparently everybody wishes to get good trades on a daily basis some seek various trading systems.
Whereas others relying on others.
What if I introduced you to a distinctive fibo trading system.
through which you could get multiple trades on a daily basis.
In this article, I am going to introduce you 1 mint fibo retracement trading strategy.
All you could need Heiken Ashi, a built-in indicator.
Along with the Fibo Retracement tool. You can apply this strategy to any instrument.
Let’s dive into the chart;
It is a Gbpjpy chart of 1 minute, I have separated it into timing so that you could apply the fibo tool accordingly.
My Area of consideration is the 19th of December, 2019 trading session.
It is inculcated that you have predetermined affirmation that not every trade could be the winning trade.
you could lose as well, however, by the end of the day, Your risk and reward do matter.
let’s see how much trade we will have in a single day by using this simple but very very effective strategy.
in order to apply fibo in an uptrend, you have to have at least two higher highs whereas in a downtrend you must have two lower lows.
Lets put in perceptive the 19th December 2019 trading session, write at the start we have observed two higher highs
Now you have to apply fibo retracement from low to high and wait for 50/61.8% retracement with the stop loss of 88.6/100%.
whereas your target could be in between 121/141% percent, in this connection you need to reverse the fibo as stated below:-
AS we move on you see subsequently the target has don.
Assumption of the Fibo Cycle!
We have additionally presumed that fibo cycle is completed around 121/141 percent
thus now we are searching for new levels
As the market went on you see we have low levels (2 lower lows)
Thus you put our fibo downward retracement from up to downward and as per the rules mentioned above, your target is around 121/141%.
Notably, you see the target has achieved 121%
So far we have got 2 trades one is from buying and another one is selling
Afterwards we have witnessed 2 higher high so we need to put fibo retracemnt tool for seeking buying _-
As we go on you see our target has achieved. see the chart below.
Subsequently we have seen 2 new lower lows, therefore , it is time to put your fibo reatracment tool
As you have implied fibo tools now searching entry for sell and also determined your stop loss and take profit as per rules.
Finally, we haven’t got enough retracement thus couldn’t get trade till the end of the day.
Notably, you have got enough trades for the day and all were in profit. As in the day we have had 3 trades.
you may put risk-reward and calculate it ultimately you will get a healthy risk-reward ratio.
Points to be noted!
Please remember you won’t get all trades-in profit.thus
some time get profit some time loss!!!.
however, I have to affirm believe.
if you could apply it on a regular basis you will get good winning trade ratios.
if you have any questions/queries please don’t hesitate to write to us and we really love to answer.
Have a nice trading journey.