This one’s for you Karla –
1. When you say you use different TFs, do you mean drawing Fibs in all of them while trying to find a match in different TFs? For example if we have 50%RT on two different TFs, would that be a perfect storm scenario?
Answer: First off, the TF’s I use are Weekly, Daily for trend analysis and 4H, 1H for entry’s – I must admit, I don’t stick to these rules 100%, but I do try as best I can. As for the FIBs, I usually only draw them on the 4H for my intraday entries (50% FIB is all I use – same as Jacko) and sometimes the Daily for a longer term position. I don’t know much about correlation when it comes to FIBs lining up, but I guess I could see the logic in that.
2. When you say Whole #s do you mean timing entries or exits as close as Whole #s as possible?
Answer: Yes, the major’s (banks and large fund managers) look at whole #’s mainly for S/R. If you look at all the major long term S/R, most of them do occur at whole #’s. This is an idea that I use from Jacko and I usually wait for a retrace as close to a whole # and a 50% FIB before I jump in…give or take a few pips.
3. If we have a 50%RT on lets say 1.2791, but we also seem to have strong support area, do you place still place your short at 1.2800? How do you know whether the support will be broken?
Answer: This depends entirely on what time frames we are trading. The longer the TF the more significance S/R lines have. My unemotional trading psyche would wait and see what happens and pick it up if it gained enough momentum (significant closes above or below the respective S/R area) I’d jump in. I am developing a sense of patience that is allowing me to not worry about missing a couple of pips in order to confirm a move. I said I am developing it because I don’t always wait and have lost many pips last week trying to guess where we are going
My current position is Short 2x’s normal with an average price of 2578. TSL @ 2659.