Targets
I thought it may be a good idea to start a thread that concentrates on targets for traders.
This is my contribution based on information from professional traders and chartists.
TEAMTRADERNice. Thanks
This PDF (found in Forex Factory) explains how the standard MT4 Fibonacci Extension can be adapted and made into a target driven indicator that caters for both up and down moves. EXCELLENT indicator.
TEAMTRADER
PS
I thought it should be tested so I put it on the 1m chart of EURCAD - attached so the result can be seen showing the target level and retracement levels. This should help a lot of traders become more profitable.
I have seen a pro trader's template and he is using a percentage of ATR (shown in horizontal daily lines above and below the median line) as targets.
I thought that may be useful for some traders.
TEAMTRADER
I have seen a pro trader's template and he is using a percentage of ATR (shown in horizontal daily lines above and below the median line) as targets.
I thought that may be useful for some traders.
TEAMTRADERPercentage of what value? If we use current atr value it will always be 100%
The reasoning behind his target driven trading is that ranging choppy charts are harder to assess and the price very often touches the levels of 85% and 75%.
It is specifically for ranging/choppy charts - trending charts being easier to trade via Fibonacci.
Unfortunately the trader will not say exactly how it is auto-produced but my observation of his platform is as follows:-
1. The central line is the 50% line of the hi/lo of the previous day - this is the starting point for the following days trading in a ranging chart.
2. EG, If the previous days hi/lo was 200 then the central horizontal of 100 forms the following days basis.
3. From this central line of '100' and the high were '200', the targets would be 185 and 175 for long trades.
4. From this central line of '100' and the low were 'zero', the targets would be 25 and 15 for short trades.
When the price goes above or below the previous days parameters then 'trending' strategies (Fibo etc) take over.
TEAMTRADER
The reasoning behind his target driven trading is that ranging choppy charts are harder to assess and the price very often touches the levels of 85% and 75%.
It is specifically for ranging/choppy charts - trending charts being easier to trade via Fibonacci.
Unfortunately the trader will not say exactly how it is auto-produced but my observation of his platform is as follows:-
1. The central line is the 50% line of the hi/lo of the previous day - this is the starting point for the following days trading in a ranging chart.
2. EG, If the previous days hi/lo was 200 then the central horizontal of 100 forms the following days basis.
3. From this central line of '100' and the high were '200', the targets would be 185 and 175 for long trades.
4. From this central line of '100' and the low were 'zero', the targets would be 25 and 15 for short trades.
When the price goes above or below the previous days parameters then 'trending' strategies (Fibo etc) take over.
TEAMTRADERSo it is, all in all, a percentage of the previous bar range?
Yes, that is it in essence.
TEAMTRADER
Yes, that is it in essence. TEAMTRADER
OK. Will see what can be done and to keep it usable
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I thought it may be a good idea to start a thread that concentrates on targets for traders.
This is my contribution based on information from professional traders and chartists.
TEAMTRADER