Friday, February 24, 2012

Inside Bars & Tuning Fibonacci

Inside Bars (And How to Trade Them)
In recent price action articles, we’ve looked at various methods of grading trends, identifying support and resistance, as well as looking for potential entries based on individual candle formations. This next formation can also help us find potential trading ideas; and it’s not because of what price is doing during the period of that candle, but its more about what price is NOT doing as the candle is forming. The ‘Inside Bar,’ is a popular candle formation that only requires two candles to present itself; as this is a direct play on short-term market sentiment looking to enter before the ‘big moves,’ that may take place in the market.
LINK: http://www.dailyfx.com/forex/education/trading_tips/chart_of_the_day/2012/02/22/Inside_Bars_and_How_to_trade_them.html

Fine Tuning Fibs
We would recommend "fine tuning" where you are placing the Fibonacci tool.  By placing a Fib line on a more recent move and/or using a shorter chart time frame, you will find that the retracement needed to enter a position will not be near as great.  Take a look at the second chart below for the "fine tuned" version.
LINK: http://www.dailyfx.com/forex/education/trading_tips/post_of_the_day/2009-12-02-2108-Fine_Tuning_Fibs.html

Using the Fibonacci Tool Part II
In an earlier article about employing the Fibonacci Tool in your trading, the basics of its use were covered. In this follow-up, I would like to go into more detail about what to look for as the pair “stalls” at one of the Fib levels.
LINK: http://www.dailyfx.com/forex/education/trading_tips/post_of_the_day/2012/02/21/Using_the_Fibonacci_Tool_Part_II..html

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