FX_Lifestyle
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Hi,
I haven't logged in for a long while...
I recently got back from my FX Lifestyle trip to Beijing Olympics where I traded from Starbucks mostly (and made about 300% on my account).
During the stay, I read a book on ICWR (impulsive/corrective wave) trading which uses fibonacci.
The system is very simple actually. I will cover the M5 version and let you decide to read the book or not (I got my copy free from AVAFX broker - but don't know if this is legal or not)...
For M5 there are 2 charts.
The daily with an RSI14 gives direction confirmation. Simply if above 50 confirms long signal. If below 50 confirms short signal.
Firstly, a move of 50 pips+ (ie a wave) is identified on M5. If it is in direction of RSI14 on Daily chart it is considered impulsive wave, if not, corrective (I think that is the rule...need to reread).
The only signal to exit/close is when a full candle closes beneath the bottom-most retracement zone. Entries are slightly more complicated and I will edit this post in future...
Here's a pic from my metatrader...(coming soon)
So in the above example, we have been in a short for some time and and exit is given I believe when the candle closes in the "top zone" which is a couple of candles before where I've marked (need to read book for exact exit). Then there is some sideways which give the "pre-entry" signal of a candle closing in the middle. No long is confirmed as RSI14 on daily is below 50, so only looking for short. Price needs a full candle open to close, high to low, in the bottom zone to trigger short on close of that candle.
I haven't logged in for a long while...
I recently got back from my FX Lifestyle trip to Beijing Olympics where I traded from Starbucks mostly (and made about 300% on my account).
During the stay, I read a book on ICWR (impulsive/corrective wave) trading which uses fibonacci.
The system is very simple actually. I will cover the M5 version and let you decide to read the book or not (I got my copy free from AVAFX broker - but don't know if this is legal or not)...
For M5 there are 2 charts.
The daily with an RSI14 gives direction confirmation. Simply if above 50 confirms long signal. If below 50 confirms short signal.
Firstly, a move of 50 pips+ (ie a wave) is identified on M5. If it is in direction of RSI14 on Daily chart it is considered impulsive wave, if not, corrective (I think that is the rule...need to reread).
The only signal to exit/close is when a full candle closes beneath the bottom-most retracement zone. Entries are slightly more complicated and I will edit this post in future...
Here's a pic from my metatrader...(coming soon)
So in the above example, we have been in a short for some time and and exit is given I believe when the candle closes in the "top zone" which is a couple of candles before where I've marked (need to read book for exact exit). Then there is some sideways which give the "pre-entry" signal of a candle closing in the middle. No long is confirmed as RSI14 on daily is below 50, so only looking for short. Price needs a full candle open to close, high to low, in the bottom zone to trigger short on close of that candle.
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