EUR/USD - Friday 24th Oct

[andys0506]

Couple of trades today +66 and +30

Heres a chart of the 2nd trade, basically just jumping on the current up trend after a pullback and candle closes above a fib level. I did in fact close this out a bit early as yesterdays low at 732 was reached. More info about this trade and the earlier one today available on my blog. Please feel free to post any questions or comments you have

 

[gamma]

Hi Andy,
How do you calculateyour fibs
Is it from yesterday,s hight to today's low ?
or is it fom a longer time period?
Fibs are something I find difficult to get to grips with.

 

[andys0506]

Hi Andy,
How do you calculateyour fibs
Is it from yesterday,s hight to today's low ?
or is it fom a longer time period?
Fibs are something I find difficult to get to grips with.

Hi, fibs are funny things, they can be drawn anywhere. The trouble with them is that people try and make them fit. I usually have a couple on my chart. The previous days major swing move plus the last significant move up or down. Note, this is not necessarily high to low, but drawn from a swing high to low. Have a look at my last post on my blog and there is a chart there which might explain it to you a bit better. There a 2 fibs drawn there. The last move (pink) and the larger previous days move (black).
Fibs are very useful. They can show you possible retracement points and allow you to fine tune your entry and targets. Price must retrace to continue with a trend, so they can also help you keep in a trade as you know price may well retrace by 50% before continuing, so by careful planning you can avoid being shaken out of the market only to see it reverse suddenly and continue in the direction without you on board!