FAO bonsai [Fibbs].

[Fluke]

FAO bonsai.

I have been studying a book, Fibonacci Ratios With Pattern Recognition. by Larry Pesavento.
I am using his method for trading the FTSE.My question is.
If I want to use just one Fibbs MA to trade in or out of a position, which one would you recommend? am trying 21,34,and 55 at the moment.Alternatively which two would you choose.?

 

[bonsai]

thats a novel way to get my attention !

I dont think there is a 'best'
A lot depends on your trading style/temperament etc
and I dont think you could say I trade the ma's anyway.

I do what I do because it works for me.
AND I am comfortable with it (psychologically)

do the back testing and forward testing until you find something
that allows you to be relaxed about your trading.

that might be a trade that lasts 1 hr or 5hrs ?
or 3 days !

One concept that might help is to decide how many times a day/week you would like to trade.
then find an ma which often gives signals at that frequency ?

but if you get 3 losses on the run, then rethink whether you have back tested it sufficiently.

hope this helps.

 

[Fluke]

bonsai.
Thanks,thats, good advice,its given me some thing to chew on.
lol.