Pimpology Lives On - Intensive Care for Newbies - page 27
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fibs and range bound markets
Hi DeeJay,
The Fib SR colored boxes are the day's Fibonacci retracement area and target area.
Notice the attached chart below with the Fibonacci retracement tools on it.
Price reversed upward during the day's opening (A) to the 1.4051 price level (B) then retraces to the 61.8 percent Fibo line (C). Then it
reverses and crossed the Fibo 0.0 line to continued moving up to the 161.8 percent Fibo line (D) before it retraces back again.
So the small rectangle area is where price is LIKELY (meaning NOT ALWAYS) to make retracement for that particular day. The target
after the retracement is the big rectangle area.
This Fibo retracement and target areas are the tunnel that Mike was talking about in his post #221. The retracement is what Mike meant
by price consolidating and the top and bottom range of the retracement is what he meant by the consolidation (small rectangle) area.
The Fibo upward trend continuation moves (from C to D) are the trades he took.
This move coincide with the 1-2-3 Pimp method where A is 1, B is 2, and C is 3. For D, Pimpology uses CCI for exit signal.
Sorry for the huge chart, but I think it's necessary so that we can see the Fibo line values I'm talking about.
Sorry for not explaining this when I first posted the indicators. The truth is, I've just reallydiscovered their function and how to use it
recently. Before this, I just thought that it was a really good support and resistance indicator that I can use for entry and
targeting
. I was an idiot for not recognizing it for what it was just by looking at it's file name 
.
I hope this post answers questions that anyone have regarding the Fib SR and FiboPiv indicators I posted. The difference between the
two is that Fib SR uses colored boxes while FiboPiv uses support & resistance line.
To guide to set MT4 Fibonacci configuration so that it matches mine is attached in the pdf file. To use Fibonacci, in down trend move
(sell), find the previous swing high (A) and swing low (B), then connect the two with Fibonacci retracement tool. Wait for a swing high.
The tip of the swing high is the point C. To calculate for point D, use the table below.
Fibonacci C to D Rules
========================
23.6% -> 118% | 127%
38.2% -> 138.2%
50% | 61.8% -> 161.8%
78.6% -> 0% | 161.%
86.0 -> 0%
100.0+ -> Reversal
* The '|' symbol means 'between'. So 50% | 60% means between 50% to 60% line.
* Any "retracement" beyond 100% is a reversal
* You could always just focus on 38, 50, and 61 - those are by far the most common.
I learned almost everything about Fibonacci from FxKnight. I'm quoting some of what he said here.
Salat.
Hi Om Salat!
Nice work. Do you have any good strategies for range bound pairs like usd/cad and usd/chf as moving averages tend to be whippy
kind regards and keep up good work!
Hi DeeJay,
The Fib SR colored boxes are the day's Fibonacci retracement area and target area.
Notice the attached chart below with the Fibonacci retracement tools on it.
Price reversed upward during the day's opening (A) to the 1.4051 price level (B) then retraces to the 61.8 percent Fibo line (C). Then it
reverses and crossed the Fibo 0.0 line to continued moving up to the 161.8 percent Fibo line (D) before it retraces back again.
So the small rectangle area is where price is LIKELY (meaning NOT ALWAYS) to make retracement for that particular day. The target
after the retracement is the big rectangle area.
This Fibo retracement and target areas are the tunnel that Mike was talking about in his post #221. The retracement is what Mike meant
by price consolidating and the top and bottom range of the retracement is what he meant by the consolidation (small rectangle) area.
The Fibo upward trend continuation moves (from C to D) are the trades he took.
This move coincide with the 1-2-3 Pimp method where A is 1, B is 2, and C is 3. For D, Pimpology uses CCI for exit signal.
Sorry for the huge chart, but I think it's necessary so that we can see the Fibo line values I'm talking about.
Sorry for not explaining this when I first posted the indicators. The truth is, I've just reallydiscovered their function and how to use it
recently. Before this, I just thought that it was a really good support and resistance indicator that I can use for entry and
targeting
. I was an idiot for not recognizing it for what it was just by looking at it's file name 
.
I hope this post answers questions that anyone have regarding the Fib SR and FiboPiv indicators I posted. The difference between the
two is that Fib SR uses colored boxes while FiboPiv uses support & resistance line.
To guide to set MT4 Fibonacci configuration so that it matches mine is attached in the pdf file. To use Fibonacci, in down trend move
(sell), find the previous swing high (A) and swing low (B), then connect the two with Fibonacci retracement tool. Wait for a swing high.
The tip of the swing high is the point C. To calculate for point D, use the table below.
Fibonacci C to D Rules
========================
23.6% -> 118% | 127%
38.2% -> 138.2%
50% | 61.8% -> 161.8%
78.6% -> 0% | 161.%
86.0 -> 0%
100.0+ -> Reversal
* The '|' symbol means 'between'. So 50% | 60% means between 50% to 60% line.
* Any "retracement" beyond 100% is a reversal
* You could always just focus on 38, 50, and 61 - those are by far the most common.
I learned almost everything about Fibonacci from FxKnight. I'm quoting some of what he said here.
Salat.
Hi Om
this is effectively a COUNTERTREND move as the trend on higher times frame is down so you are confident it is going to go countertrend when it does not reverse more than 61.8 fib and certainly not more than 88.8 for point C right?
Hi AG,
It's nothing against the Heiken Ashi candles. I'm just trying out some swing trading technique, and to do that I need to see the candles for what it is. You know like the Morning Start, Hanging Man, Hammer, etc. So my entry is based on candle reversal pattern with the CCI in oversold area above the 200 line or bellow the -200 line area. Then I keep my trade longer with Zak's method. When the CCI is again in the oversold area or bounces of the 0.0 and I see a reversal pattern, I exit my trade.
Hope you can start trading again soon.
SalatYou are right. I find Heiken Ashi are sometimes disturbing an important part of learning forex, coz a trader must watch very closely the candle formation in order to be more profitable, until your brain can recognize them automatically. This is specially important when you trade longer TF ( 1H. and +) but not very if you trade smaller TF, in which case Heiken Ashi can be as valuable as a moving average. But many people feel more confortable trading with it, because they can see heiken candles going bigger or smaller and changing colors. But you can train your eyes in price action too, which in my view is more reliable.
Hi Raulin,
Please read on below.
Do you have any good strategies for range bound pairs like usd/cad and usd/chf as moving averages tend to be whippy
For USDCAD. I don't trade that pair. It's too suicidal for me. Too many head fakes (long wick candle) for my taste. When a pair have long wick candles on almost all or every other candles, I consider it as a high risk pair to trade. So I just stay away from those pairs. No sense in adding unnecessary risk to my trade. There are plenty enough other currency pairs that I consider less riskier to trade. Sorry I can't help you on this one.
You have to remove the Heiken Ashi indicator to be able to see the long wick candles and all the head fakes.
As for USDCHF pair. When I used to trade it, I traded it side by side along EURUSD pair. Checkout the two pairs below side by side. Almost the exact opposite price action. So when I put a sell order on EURUSD, I immediately put a buy order on EURCHF. I just have to concentrate on the less riskier EURUSD pair. When the two pairs move in the same direction, I stay away. Pretty simple rule. It's almost a no brainer move. Killing two birds with one stone.
this is effectively a COUNTERTREND move as the trend on higher times frame is down so you are confident it is going to go countertrend when it does not reverse more than 61.8 fib and certainly not more than 88.8 for point C right?
Actually those are not the reason I took the trade. If you take a look at the chart in question, there was a double top and a bearish reversal candle forming and signaling a reversal (I removed the Heiken Ashi indicator for this reason). If you take a look at the H4 chart, you can see that there was a strong resistance at that price level also.
You can use the FiboPiv_v2 indicator that I posted in post #231. It will automatically plot support and resistance line for you. Support 3 and Resistance 3 is the strongest. When price crossed or touched it, it will reverse/retrace for some good pips.
If you go back to the chart in question, you'll see that below my trail stop, there was a dotted lime colored resistance 3 line. That line corresponds to the H4 resistance line showed in the chart above.
The indicator does not move/redraw until it finds another strong support/resistance. Please DO NOT base you trade on this indicator alone. It's an add-on to the Pimpology method I'm using and I should not be discussing it here any further as it moves away from the main topic of the thread. You can PM or email me if you have more question about it though.
Salat
Hi Raulin,
Please read on below.
For USDCAD. I don't trade that pair. It's too suicidal for me. Too many head fakes (long wick candle) for my taste. When a pair have long wick candles on almost all or every other candles, I consider it as a high risk pair to trade. So I just stay away from those pairs. No sense in adding unnecessary risk to my trade. There are plenty enough other currency pairs that I consider less riskier to trade. Sorry I can't help you on this one.
You have to remove the Heiken Ashi indicator to be able to see the long wick candles and all the head fakes.
As for USDCHF pair. When I used to trade it, I traded it side by side along EURUSD pair. Checkout the two pairs below side by side. Almost the exact opposite price action. So when I put a sell order on EURUSD, I immediately put a buy order on EURCHF. I just have to concentrate on the less riskier EURUSD pair. When the two pairs move in the same direction, I stay away. Pretty simple rule. It's almost a no brainer move. Killing two birds with one stone.
Actually those are not the reason I took the trade. If you take a look at the chart in question, there was a double top and a bearish reversal candle forming and signaling a reversal (I removed the Heiken Ashi indicator for this reason). If you take a look at the H4 chart, you can see that there was a strong resistance at that price level also.
You can use the FiboPiv_v2 indicator that I posted in post #231. It will automatically plot support and resistance line for you. Support 3 and Resistance 3 is the strongest. When price crossed or touched it, it will reverse/retrace for some good pips.
If you go back to the chart in question, you'll see that below my trail stop, there was a dotted lime colored resistance 3 line. That line corresponds to the H4 resistance line showed in the chart above.
The indicator does not move/redraw until it finds another strong support/resistance. Please DO NOT base you trade on this indicator alone. It's an add-on to the Pimpology method I'm using and I should not be discussing it here any further as it moves away from the main topic of the thread. You can PM or email me if you have more question about it though.
SalatNow I am confused. I thought you went long using 61.8 fib correction at point C to point D? The short ok I can see ...logical.
Apologies I was referring to the indicators posted by om salat
Thanks
Attached Files
Fib SR.mq4 (3.2 KB, 6 views)
FiboPiv_v2.mq4 (4.6 KB, 3 views)Hi DeeJay,
The Fib SR colored boxes are the day's Fibonacci retracement area and target area.
Notice the attached chart below with the Fibonacci retracement tools on it.
Price reversed upward during the day's opening (A) to the 1.4051 price level (B) then retraces to the 61.8 percent Fibo line (C). Then it
reverses and crossed the Fibo 0.0 line to continued moving up to the 161.8 percent Fibo line (D) before it retraces back again.
So the small rectangle area is where price is LIKELY (meaning NOT ALWAYS) to make retracement for that particular day. The target
after the retracement is the big rectangle area.
This Fibo retracement and target areas are the tunnel that Mike was talking about in his post #221. The retracement is what Mike meant
by price consolidating and the top and bottom range of the retracement is what he meant by the consolidation (small rectangle) area.
The Fibo upward trend continuation moves (from C to D) are the trades he took.
This move coincide with the 1-2-3 Pimp method where A is 1, B is 2, and C is 3. For D, Pimpology uses CCI for exit signal.
Sorry for the huge chart, but I think it's necessary so that we can see the Fibo line values I'm talking about.
Sorry for not explaining this when I first posted the indicators. The truth is, I've just reallydiscovered their function and how to use it
recently. Before this, I just thought that it was a really good support and resistance indicator that I can use for entry and
targeting
. I was an idiot for not recognizing it for what it was just by looking at it's file name 
.
I hope this post answers questions that anyone have regarding the Fib SR and FiboPiv indicators I posted. The difference between the
two is that Fib SR uses colored boxes while FiboPiv uses support & resistance line.
To guide to set MT4 Fibonacci configuration so that it matches mine is attached in the pdf file. To use Fibonacci, in down trend move
(sell), find the previous swing high (A) and swing low (B), then connect the two with Fibonacci retracement tool. Wait for a swing high.
The tip of the swing high is the point C. To calculate for point D, use the table below.
Fibonacci C to D Rules
========================
23.6% -> 118% | 127%
38.2% -> 138.2%
50% | 61.8% -> 161.8%
78.6% -> 0% | 161.%
86.0 -> 0%
100.0+ -> Reversal
* The '|' symbol means 'between'. So 50% | 60% means between 50% to 60% line.
* Any "retracement" beyond 100% is a reversal
* You could always just focus on 38, 50, and 61 - those are by far the most common.
I learned almost everything about Fibonacci from FxKnight. I'm quoting some of what he said here.
Salat.
Now I am confused. I thought you went long using 61.8 fib correction at point C to point D? The short ok I can see ...logical.
Ha ha ha, yes I'm an idiot. Sorry, I thought you asked about my counter trend move going short as that was what the trade I took after going with the M30 up trend.
OK well, the long trade before that short I took was actually going with both the H4 and M30 up trend going up from the 61.8 fib line to the 161.8. The up trend was clearly shown by the higher high and higher low swings on both H4 and M30 time frames. My exit was at the 138.2, a little above the strong resistance 3 line. Yes, it's an early exit as I did not go for the 161.8 fib target that perfectly go hit, but I would rather be safe than sorry and I was also afraid because, again, there was that big bad ass strong resistance 3 staring at me in the face.
Then again, taking that short trade after price hit the 161.8 fib line proved to be more profitable than if I had to force myself to be brave and exit the long trade at the 161.8 fib line.
Quick trend recognition
For those that did not know or have forgotten, the quick way to recognize a trend is by identifying price high and low swings.
Up trend = higher high & higher low swings
Down trend = lower high & lower low swings
Of course with the Pimpology template, you can see the higher time frame trend from the lower time frame chart just by checking the MA ordering. When your MAs are sorted in a nice order going from fastest to slowest, that means the current trend in the lower time frame chart you're looking at is going with the same trend of the higher time frame chart. When this happens, hold your trade for bigger pips.
Remember though that the higher time frames trend rules over the lower time frames trend. So a trend reversal in lower time frames could just be a retracement of the higher time frame trend. Also, a "small" retracement in let's say an H4 time frame could mean a 100 to 200 or even 300 pips trend reversal in M5 or M15 time frame. So be mindful of where you enter your trade in regard to the higher time frame.
Salat
totally fresh
I mailed zak for templates of this strategy about 1 week earlier. but no feedback. Please anybody send me all the tools suporting the starategy "Pimpology". to my mail : <a href="mailto:hvpulok@gmail.com">hvpulok@gmail.com
Thanks in advance.
Anyway.. thanks to zak and all the members for your great contribution.Hi Salat, can you also please send me the template to my adress: wgq8874@yahoo.com
Im a newbie here in forex world..
Pimping Fibs
Sweet way to start the week on GBPUSD. Price tried 3 times and could not break through the 38.2 Fib level on the H4 time frame. Zoomed in to the M15 chart to look for entry point.
On the M15 chart, price bounced of the 38.2 Fib level was confirmed along with the two bounces of the M15 80MA. So on the red candle is my short entry. A little bit early before the break to the M15 bottom trend line, but when it's gotta go down, it's gonna go down
. Also 7CCI and the 21CCI is breaking the 0.0 level and the 84CCI is below the 0.0 line. So EVERYTHING is saying down, no more confirmation is needed.
Took out half position at Support 1. Full exit target is at the 138.2 Fib level, just a little bit below Support 2. There's no need to be greedy and shoot for the Support 3 level. Besides, the rule says 38.2 -> 138.2. Besides, if you take a look at the H4 chart, this down move could be the making of the right shoulder of an inverted head and shoulder formation.
I'm moving my stop to break even and putting a 65 pips trail stop. If this second half of my position get stopped, I'll still have 52 pips profit from the first half of the lot.
Salat