Haven't posted before except to ask for an exit EA. I want to contribute like the other kind posters here. I reference a poster named Glenn that showcased a London Breakout method a couple of years ago, as well as some of the indicators below. Don't really need most of them, but in the event you want to monitor momentum, etc., it will be on your chart.
Have heard that some don't trust the breakout as it can go back into the "Box". Understanding how the market moves with the fib A-B-C-D action will provide more confidence in your trading.
Forex Fib Trading -------A-B-C-D Trade
Chart Intervals: 1, 5, 15, 60
Gann Hi-Lo Activator
FX Sniper’s Ergidic CCI & Trigger
Forex Freedom Bars
MTF Heiken Ashi (sw)
Add 78.6 fib
Add price display to each fib line. Type in %$ after fib number.
Rules (you can use other breakout entries including break of S/R and channels):
1) London Breakout method. Measure hi/lo from Asian session (Box). Usually, entry is after candle closes outside of that hi/lo Box, the 5-min candle for example.
2) Place Stop-Loss at A) last pivot on 5-min…or B) exit when 5-min candle closes inside of the Box. Remember to factor in spread on Stop-Loss.
3) Size number of lots based on your max risk. If you are using exit B, you must set a stop-loss of a certain number of pips as a safety net. You can use something like 10 pips inside the box (plus spread if any).
4) Target profit based on fib extension from 5-min chart’s last move. If last move was small (less than about 30 pips), usually fib extension will hit 1.618% (FE 161.8%). If last move was large, target smaller level of 1.000% (FE100%).
· You can move the stop-loss when market reaches the FE 100% extension and you either A) target the 1.618% fib, or B) take partial profit at 100% and balance at 1.618% fib.
5) The A-B-C-D movement should always be monitored and understood. When a top or bottom is established, the move will retrace to 38.2%, or 50%, or 61.8%. In some cases it will go 78.6% and 100%.
A = Start of move. B = End of move. C = Retrace Point.
D = is where we want to project the extension.
6) After the move retraces, we look for it to break B. You can set an automatic entry 2 to 3 pips beyond B. Remember to factor in the spread. (See paragraph 10 for Move in Progress).
7) Look at 5-min chart and measure the last move (A-B). Use fib extension tool off of those 2 points. The Take Profit (TP) will be as per #4 above.
8) Always check 1-min chart. It can be used as the trigger in an attempt to get a better entry and/or exit order price fill. Smaller moves can also be identified on the 1-min chart that may not be visible on the 5-min.
9) You should always consider re-drawing fib extensions if a move gets exhausted before your exit. Adjust your Take Profit accordingly.
10) If you are using the Box breakout (such as the London Breakout), the move outside of the box may be a Move in Progress (MIP). Draw the fib retracement and fib extension to ascertain what is going on. If the move stalls and retraces into the Box, you are less jumpy because you can anticipate a retracement to a certain level and watch for a reattempt to break “B”. This is the reason some breakouts go back into the Box. You can now enter when “B” is broken just beyond the Box.
11) Monitor longer time frames for support and resistance (S/R).
12) Always trade with the trend if you are a beginner. Use the Ichimoku and Freedom Bars for that purpose. The market moving above or below the Ichimoku clouds indicates current up and down trend situation. The Freedom Bars track 4 time frames in blue and red to indicate up/down market coloration. A trader can elect to only trade in the direction when all 4 time frames are one color.
13) The FX Sniper crossover aids in confirming trend and directional change. The Multi-Timeframe (MTF) Heiken Ashi also provides crossovers but is less sensitive with overbought/oversold.
14) The Keitner Channel helps visualize oversold/overbought conditions. It also has a middle line for those trading from the outer extremes to that point.
15) The Gann Hi-Lo Activator assists in identifying a reversal of direction.
16) The ADX Cross is displayed with arrows. It confirms change in direction. Is effective on the 15-min chart, but may be best on the 30-min for reference. Use with Fractals, which indicate pivot/directional changes.
Does not support openning multiple orders on a single symbol on MT5
MultiMTCopier MT5Receiver - new and improved multi-terminal positions copier for your real/demo account, works faster, requires less, flexible in managing and upgrading, new information support. This Expert Advisor is designed for the MetaTrader 5 terminal, trades will be copied into this terminal.
The EA will copy all positions without delays Additionally integrated notification in situations requiring user
VirtualTradePad - is a contol panel for working with orders in МetaТrader 5 : buy, sell, buystop, buylimit, sellstop, selllimit, close, delete, modify, tralling stop.
VirtualTradePad won 2nd prize in the "Best Control Panel in the MQL5 Language" Contest.
The panel consists of 5 tabs.
VirtualTradePad PositionsStyle VirtualTradePad Ordersstyle VirtualTradePad SignalsStyleDemo version of the panel - VirtualTradePad LiteProfit or Loss PadINFO PadYou can also try this panel for
This indicator will help you add any custom indicators to a mini chart that is open on the main chart.
When you start this indicator, in the parameter table, you have to choose the name the of mini chart you want to add to the main chart, and you have to choose the symbol, period and coordinates of the minichart on the main chart with X-distance and Y-distance parameters. Then you type the indicator's name (that indicator must exist in the indicator folder already).
If you want, you can choos
The indicator is intended for determining the spread and swap size, the distance for setting stop orders and stop losses from the current price allowed and the risk per 1 point in the deposit currency.
The indicator informs a trader about possible additional expenses and profits connected with transferring a position to the next trade session of the financial instrument. It also informs about the spread size and the distance of pending orders, stop loss and trailing from the current price. In a
Zig Zag Swing Detector is a talking indicator tool, that let you track new highs and lows using Zig Zag patterns and allows you to react to new highs and lows. For example for uptrend each time there is higher hi spotted, the strength of the trend is increased. Trend is ended with lower low than the previous one.
Be notified by Alerts, Speech and Notifications and be alerted about new highs/lows!
You can also setup conditions to open trades automatically on new heights. Speech synthesis allows
Auto Trade Copier is designed to copy trades between multi MetaTrader 5 accounts/terminals with 100% accuracy.
With this tool, you can act as either a provider (source) or a receiver (destination). All trading actions will be copied from the provider to the receiver with no delay.
Note: Demo version for testing can be downloaded at: https://www.mql5.com/en/market/product/5006.
Followings are highlight features:
Switch between Provider or Receiver role within one tool.One provider can copy tr
FXG_Info – the most important data in one place.
MetaTrader 5 Indicator FXG_Info provides basic statistical information about a particular currency pair. So that in combination with a chart representing currency price it is easy to determine whether the current situation is good for trading. And when you open a position it will clearly show you the current data such as SL, TP, RR. You are not limited to currency. You can use any market which is provided by you broker.
The following information
This software has no equals in the world and represents a universal trade "console" covering trading signals, automated market entry, setting of Stop Loss and Take Profit, as well as Trailing Profit for multiple trades at the same time in a single open window. Intuitive control of the Expert Advisor in "three clicks" ensures a comprehensive use of all its functions on different computers, including tablets PCs.
Interacting with additional signal indicators that mark the chart to give a real mar
The Turtle Trading Indicator implements the original Dennis Richards and Bill Eckhart trading system, commonly known as The Turtle Trader. This trend following system relies on breakouts of historical highs and lows to take and close trades: it is the complete opposite to the "buy low and sell high" approach. The main rule is "Trade an N-day breakout and take profits when an M-day high or low is breached (N must me above M)".
The Turtle Trader legend began with a be
Who will be interested in this product:
those who are used to diversify the portfolio with a large number of pairs. those who work with a large number of orders those who trade news using pending orders (see the "Grid request" tab).The panel is designed to make managing a large number of orders as easy as managing one.
The currency pairs and order types for opening are formed here. The prices and stop levels are set.
User can define the price valu
The indicator has standard settings. The new modification of indicator provides special marking of the segment when the moving averages begin to form a cross in one direction or another. The Alligator`s cross indicates that the trend is about to change. Modified Alligator helps traders to determine a trend on a particular timeframe even if the averages are intertwined and have a shift in the future. Direction of a trend is determined by a cross of the averages with a specified marking area on th
TTMM – "Time To Make Money" – Time When Traders Makes Money on the Stock Exchanges
The ТТММ trade sessions indicator displays the following information:
Trade sessions: American, European, Asian and Pacific. (Note: Sessions are displayed on the previous five days and the current day only. The number of days may change depending on the holidays - they are not displayed in the terminals. The sessions are also not displayed on Saturday and Sunday).
The main trading hours of
This is a panel for controlling the profit/loss in dollars, pips or % of balance. A new function for trailing profits has been implemented.
The panel can be used as a virtual Stop Loss or Take Profit.
It also features the emergency button - CLOSE ALL.
You can also try the full version of the VirtualTradePad for mt5 panel, as well as the Profit or Loss for mt4 panel
Other versions in this collection:
VirtualTradePad for mt5 Digit Market Time Pad Market Time Pad Scalper PadMain f
Safe Automatic is a safe MetaТrader 5 trading robot working autonomously on a VPS server. The good results are achieved on EURUSD.
The EA applies modified versions of a trend-following strategy, half-pyramiding, scalping, Elliott Wave method and speculating trading with a deposit protection. The EA switches the strategies automatically. The robot does not trade at night from 10 p.m. to 4 a.m. (server time).
The robot was tested in the special tester on real ticks. Empirical e
Veno EA MT5 is a safe and fully automated medium-term trading robot.
The EA does NOT use hedging, martingale, grid strategies, arbitrage, etc.
Veno Expert System MT5 automatically monitors the appearance of participants with distinct preference towards buying or selling on the market. Trades are conducted on sharp cluster and news based movements of the market. The robot analyzes the market volumes and volatility, and follows strong supply and demand movements. It smoothly sets breakeven level
This indicator shows how much time is left on the current candle.
You have absolute control over appearance of remaining time label. Also, you can set additional flag to show remaining time in the comment section of your chart and how much time has already passed on the current candle measured in percents.
This indicator gives full information about the market state: strength and direction of a trend, volatility and price movement channel. It has two graphical components:
Histogram: the size and the color of a bar show the strength and direction of a trend. Positive values show an ascending trend and negative values - a descending trend. Green bar is for up motion, red one - for down motion, and the yellow one means no trend. Signal line is the value of the histogram (you can enable divergence
You no longer need dozens of monitors to analyze the behavior of 28 different instruments on 6 timeframes in statics and dynamics of their relationship.
Megatrend Monitor SF286 allows you to do all that on a single monitor in a window of a single chart.
Model SF286 only resembles its predecessor - Megatrend Monitor.
SF286 received a completely new algorithm based on the SinFractal 7TF indicator, and became much faster in calculations and histogram plotting.
And most importantly, SF286 acqui
The script is intended for automatic placing of Sell Stop pending orders, Stop Losses and Take Profits on the user specified levels. This script is not that useful as "Virtual pending buy stop", since short positions are opened as Bid price crosses the levels. Thus spread widening is not dangerous. Nevertheless, you need to have this script to prevent unwanted hitting of the Stop Loss levels.
Automation of the process of placing the Sell Stop pending orders, Stop Losses and T
FULL Automatic is a fully autonomous trading robot for MetaТrader 5 without configurable parameters.
It is similar to SAFE Automatic robot intended for traders having no knowledge of trading basics. It works in Low, Medium, High and Extremal trading modes.
The EA applies modified versions of well-known strategies, including Elliott waves, following a trend, half-pyramiding, scalping, speculative trading with a double deposit protection. The EA switches the strategies automati
This is the test product.
Please, DO NOT BUY IT!
This is the test product.
Please, DO NOT BUY IT!
This is the test product.
Please, DO NOT BUY IT!
This is the test product.
Please, DO NOT BUY IT!
This is the test product.
Please, DO NOT BUY IT!
This is the test product.
Please, DO NOT BUY IT!
This is the test product.
Please, DO NOT BUY IT!
This is the test product.
Please, DO NOT BUY IT!
Easy Order is an Expert Advisor allowing you to enter any type of trade with one click based on your RISK preferences.
You can choose to enter a trade and automatically calculate your lot size based on how much of your account you want to risk. Risk is calculated based on your Stop Loss placement. You can use a fixed lot size if you don't want to use risk based calculation of lot size. Your previous setting of risk based or fixed lot size remains saved for your next use of this Expert Advi
The Spread Record Standart indicator displays spread for each price bar as a bar graph. It uses five variables as spread values:
Spread level at the bar opening; Maximum spread level reached during the bar; Minimum spread level reached during the bar; Spread level at the bar closing; Average spread level within the bar (displayed as a green dot on the corresponding level of the bar)Apart from displaying price bars, SpreadRecord also provides a small built-in panel showing the curre
There is Demo version of this panel Dashboard Babon Scalping System MT5 Demo in my product list, please try it out to get familiar with all functionalities for free.
Free version: LINK
MT4 version: LINK
This system basically utilizes TDI, Heiken Ashi Trend, Price Trend on H1 time-frame and TMA on H1&H4 time-frame to generate the trend (big picture). Then the system will zoom in to generate the entry point on M1 time-frame using Babon Slope, M5 TMA, and Ichimoku indicators. The signal will be
We present you an effective software solution for arbitrage between brokers.
The Arbitrage on the market became widespread due to decentralization. There are many liquidity providers, whose quotes differ for various reasons. By tracking the dynamics of changes in the quotes of different brokers, it is possible to determine the delayed and leading brokers, thereby predicting the future prices of the delayed broker for a short time. Knowing these prices and using efficient built-in software filte
Fast Copy MT5 allows to copy trades between different MetaTrader 5 (netting)(hedge) and MetaTrader 4 accounts in any direction and amount, quickly and easily (without loading the system).
Any type of copying is available MT5 —> MT5 MT5 —> MT4 MT4 —> MT5 MT4 —> MT4
* For any interaction with the MT4, it is necessary to additionally install Fast Copy MT4
One tool for sending and receiving transactions: [master] > [slave] operation mode can be selected in th
The script is intended for automatic placing of Buy Stop pending orders, Stop Losses and Take Profits on the user specified levels.
Avoiding unwanted entering a long position in case of false hitting the level as a result of widening of the spread by a dealing center. Avoiding unwanted triggering of a Stop Loss in case a quote pierces a significant level (fractal) without further confirmation with the close price. Setting a necessary virtual order and entering the market in
The indicator determines and marks the short-term lows and highs of the market on the chart according to Larry Williams` book "Long-term secrets to short-term trading".
"Any time there is a daily low with higher lows on both sides of it, that low will be a short-term low. We know this because a study of market action will show that prices descended in the low day, then failed to make a new low, and thus turned up, marking that ultimate low as a short-term point. A short-term market high is just
The EASIEST way to manage your risk for each trade!
Add the indicator to your chart, configure a risk percentage (of account equity) Enter the number of pips for your stop loss into the text entry field that appears on the chart The position size to take will automatically be updatedThe product features two modes - a compact mode which allows entry of stop loss pips and shows the resulting lot size based on the percent risk setting, as well as an expanded mode that also shows
S2 Trend At Wavelet is designed to eliminate the noises on the Price Chart. A clear picture of the market flow will be seen due to the elimination of the unnecessary variations on the chart.
Capabilities of S2 Trend:
Chart End could be shifted to any desired point by Market End Line; A desired Scale could be used by selecting Scale Menu and the result will be shown on the chart; A separate diagram on the Main Chart could be shown by using Chart window's check box; Graphical representation
May 5th London Breakout & Fib Extension
The attached 5-min chart shows a small breakout which would be deemed a false breakout. If we look at a 1-minute chart, it will show that it only extended to the FE 61.8% for a 9-pip gain past the Asian low.
If one entered at that first break of the Asian low (red horizontal line), it would have required the trader to re-measure their fibs. A trader that did not enter also should do this.
I have illustrated the breakout with a 5-minute chart. Moving Point “B” to the low of 1.2914 wilshow a retracement to the 38.2 fib (black fib lines), which we will label as Point “C
Now redraw the fib extension based on the new Point “” to arrive at the exit targets of the FE 100 and FE 161.8 (white fib lines)
Wait for the break of the new Point “B If one was already in the trade, the trader now understands that there may be a larger move, retracement, and fib extension (FE) going on. Entry would have been at about 1.2908 (arrow) based on the opening price of the candle following the closing candle below Point “B
If the trader was already in the trade based on the first breakout, the retracement to Point “C” would not have stopped out the trade. This is due to the original stop loss being placed just above the pivot of 1.2952 (last blue candle prior to first break)
Now the stop loss must be moved to just beyond Point “C”, or just above the last pivot of 1.2923 (high of 12:25 candle)Choosing the stop above C would have made the risk distance high, about 45 pips. Using the 1.2923 pivot would reduce that to about 15 pips. Remember to factor in 4 pips to cover the 3-pip spread plus 1 pip just in case.
In any event, always size the number of lots based on your max risk tolerance. If anyone wants me to post a simple sizing calculator spreadsheet (Excel), just ask.
Once the move pivots again at the 12:45 candle, we want to move the stop-loss to just beyond that high of 1.2901 plus 4 pips = 1.2905. Now the trade will be protected against a loss. The reason to select this candle is due to the move respecting that FE 61.8 fib as resistance.
2 candles later, the move hit the FE100 fib for the first profit target level. Trader can elect to exit at this level (or did by auto TP) for a +33 pip win.
Since the distance from Point A to Point B was considered large by me (78 pips), I usually choose to target the FE100.
We are witnessing the Euro under siege. My discipline takes into consideration that heavily trending markets are not usually the case. Therefore, I have to instruct in a manner that is safe year-round. Experienced traders will make adjustments based on their feel for the market.
In an attempt to have your cake and eat it too, one can exit a majority of lots at the FE100 and attempt to take profit with the balance at the FE161.8.
Alternative, one can monitor the Heiken Ashi (on the 5 or 15-min chart) with the balance and ride the trend. The attached chart did not include the Heiken Ashi because I wanted viewers to see normal candles for pivot points to move stops.
Prior to breakout, it was easily determined that the trend was down. As per my first post, I use the Ichimoku.
The FX Sniper Ergodic also had crossed down prior to entry.
Using a stop loss based on a pivot is more scientific than just a number of pips into the Asian Hi/Lo Range (Box).
Practice drawing fibs. You will see how much the market movement will respect this very powerful Support & Resistance tool.
Just concluded an ABCD trade on EUR/USD. Pair broke Point "B" after retracing 50%, establishing Point "C". attached is 5-min chart.
A trader that trades a particular pair would know that major support was also at 1.2789. That was newly established low from U.S. session, and new low for year.
This works out to be a breakout trade from the U.S. session low. Again, we were joining a Move In Progress (MIP). See 1st post for explanation.
Entry at 1.2784. stop-loss placed just above the last pivot of 1.2803 (plus spread and 1-pip cushion =1.2807). Check 1-min chart.
Risk = 23 pips
FE 161.8 price of 1.2767 (add spread of 3 pips = 1.2770) for + 17 pips
FE 236.2 price of 1.2737 + spread = 1.2740 for + 47 pips
Edit: Chart label shows wrong entry price. My graphic artist skills are poor.
Also forgot to mention the I showed the Ichimoku. When market is above or below those "clouds", it indicates up or down trend.
The lower indicator is the Freedom Bar, which were all red, denoting 4 time frames with down trend.
Sniper crossed over confirms sell move.
Since that major support was there at 1.2789, it was not safe to trade the break of Point B price of 1.2812. Unless you were to take profit just ahead of that 1.2789. After deducting spread and some cushion on entry, net gain would probably only work out at about 15 pips.
Also, with such a significant support like that (new year low), there normally is a lot or automatic orders waiting around that price level. we're talking potentially $ billions. There is no guarantee that the move would have hit 1.2789, and may have in fact spiked up against a sell position as it neared that support.
Therefore, waiting for MIP to break U.S. session low was a much safer plan.
I want to post an ABC Retrace that just occurred. Missed it as I was fooling around with posting charts from last night's London Breakout, which I'll do later. By the time I saw it the entry was not a good risk/reward scenario.
Attached is 5-min EUR/USD. You can see the A-B swing. I drew fibs (wider fibs) and the move stop around the 78.6% retrace fib level. Interesting was that it was also at the Ichimoku cloud. That indicator uses the edges of the clouds as support and resistance. Additionally, we had the Asian low of 1.2736 (red horizontal line). Thus, multiple things were telling us that there is significant resistance there.
I used the Fractal as well. Once that was established, the entry was 1.2728. The Fractal develops after the 2nd candle closes, after the high is established (see down arrow).
Stop-loss would be 4 pips above the high of Point "C" price of 1.2741 = 1.2745. Risk = 17 pips.
Target to take profit:
We measure the retrace from C-D (shorter fibs on chart). It's a little hard to see both but the 2 fib have one thing in common. The up arrow shows that it is both the 50% retrace from B-C and the 38.2% retrace of A-B.
Exit price = 1.2698 + 4 pips = 1.2703. Reward = 25 pips.
Therefore risk/reward was 17/25 and better than a 1:1 ratio, which is the objective.
I decided not to pull the trigger since I was late noticing this and price was already 1.2719. That's O.K. Do not chase, there's ALWAYS another trade. In fact, ABC patterns happen all of the time.
Note that my fib labels (far right) has the price right behind the fib%. See my first post on how to accomplish that.
May 6th breakout from the Asian session low of 1.2736 (red horizontal line)
Once again, the breakout was a Move In Progress (MIP). Drawing the fib extension as illustrated on the attached 5-min chart of EUR/USD, saw:
1.2729 using opening of 11:50 5-min candle (down arrow). We waited for the break candle to close.
Point C price was 1.2769. Adding 4 pips = 1.2773 stop-loss. Risk = 37 pips.
That’s a large distance. If you use that, you must size the number of lots traded downward quite a bit depending on your max risk tolerance
Alternatively, we can look for a smaller stop by looking at the 1-min chart. The last pivot above our entry would be a 1.2752 at the high of the 11:45 candle.
Add 4 pips = Stop-Loss of 1.2756. Risk = 27 pips.
Take Profit targets:
FE 61.8 of 1.2612 + 4 pips = 1.2616 = +13 pips……Risk/Reward = 27/
FE 100 of 1.2692 + 4 pips = 1.2996 = +33 pips…….Risk/Reward = 27/
FE 161.8 of 1.2660 + 4 pips = 1.2664 = + 63 pips….Risk/Reward = 27/6
The move from Point A to Point B was 55 pips. I consider this a large move and would normally only look to take profit at the FE100.
Red horizontal line is Asian low of 1.2736
White horizontal line is Stop-Loss of 1.2752
Remember, we set the stop 4 pips above 1.2752. The spread is 3 pips, and we add one for cushion.
We would have been safe even though EUR/USD moved back into the Asian range (Box).
We can see it hanging around the Asian low after bouncing off the FE 61.8.
My guess as to why it was fluctuating around the Asian low is that 07:00 candle low of 1.2636 was a quick probe not recognized by the market/traders. If you use your cross hair tool, you can see that 1.2644 was probably the real Asian low. That is confirmed by chart movement. This is hindsight of course. Each broker’s feed can differ slightly. In this case it made things a bit confusing
Point B price of 1.2654 was established at the end of the European session and was session low, which made it a clean opportunity.
It retraced to the 78.6% fib. Additionally, we have the Ichimoku cloud edge as resistance, was well as a previous S/R of 1.2736 (red horizontal line).
Entry = 1.2642
This was the second candle (18:10) after break candle closed on 5-min chart.
Check 1-min chart for pivot.
1.2671 + 4 pips = 1.2675 = 33 pip riskThat's the best we can do as the market was moving good.Target ProfitFE 100 = 1.2595 + 4 pips = 1.2599 =+43 pip rewardRisk/Reward = 33/43As most of you know by now, the stock market took a big dip around 18:40 GMT. The EUR/USD did hit the FE 161.8 exactly.
Don't chase the market when this happens as a big spike back can hurt you. It can drag your stop loss and you will still be responsible.
The fibs, when properly drawn, will provide an exactness to your trading.
May 7th Asian Session Breakout
Attached are 5-min and 1-hour charts.
We saw a breakout to the upside from the Asian high. It went for 24 gross pips. If a trader targeted a set number of pips, say 15 as taught by glenn5t, then it was a successful trade. Some traders move their stop-loss to break-even after profit is 10 or 15 pips.
Following the ABCD method, here’s what the picture was
Asian high = 1.2772
The breakout failed to move past the FE 61.8. It stopped at 1.2797.
If we, in hindsight drew A-B to have B = 1.2742, then the fib extension will show the move hit the FE 100.
Always monitor a longer term chart. The attached Daily chart shows why the market stopped at 1.2797. It is the 38.2 retrace of the last move down. This is considered a significant resistance level. Knowing this was a major hurdle in advance, can prevent you from entering this trade.
The market was moving fast upwards, as witness by the size of the 5-min 10:30 (GMT) candle as it broke the Asian high.
Based on the Chart 1 A-B and its extension projection:
1.2785 + 3 pip spread = 1.2788
After close of 5-min break candle. Opening price of next candle.
1.2742 + 1 pip cushion = 1.2743
Last pivot. Couldn’t get a better pivot, even on the 1-min chart
FE 100 = 1.2827 + 1 pip cushion = 1.2826
Risk/Reward = 45/38
Risk = 45 pips
Reward = 38 pips
Not a good Risk/Reward scenario from the beginning = red flag.
Part of the reason was the entry price was quite a bit higher than the Asian high, a difference of 16 pips.
The significant 38% retrace price (major resistance) on the Daily chart = red flag.
The distance of the stop-loss was 45 pips. For me, this is too high, even if I size the lots to be traded = red flag.
The Freedom Bars showed the 4-HR in down trend = red flag. Sorry, I did not include the Freedom Bars on the charts.
Most likely, many would have drawn the fib extension based on the A-B points on Chart 1. This happens sometimes, but don’t get discouraged. Assess the trade and look for red flags such as described above
The main message is that there will be times when you don’t/can’t read the market properly, or too many red flags pop up. When you have mastered drawing fibs, you will have enough of an advantage to withstand losing trades. Remember to take your lumps and learn from them. Obviously, always trade with a stop-loss, and size your lots for each trade, conforming to your maximum ris
My next post will teach you a trick on how to use/adjust the Fib Extension tool. MT4 also refers to the Extension as the Expansion. The 2 words are interchangeable.
Attached are 4 charts. Charts 1 and 2 are the before and after adjustment to the Fib Extension Tool. Likewise with Charts 3 and 4.
When dragging the FE tool from Point A to Point B, you will see a third dotted line. This is for placement to Point C.
Simply drag that third dotted line the Point C. Sometimes the difference is subtle, and other times it makes quite a difference.
The before and after on Charts 1 and 2, we can see how the EUR/USD hit the FE 100 when we made the adjustment to properly place the third dotted line on Point C.
The difference was much less on Chart 3 and 4. You can see how far off that third dotted line is, in advance.
This is the proper way to use the FE tool.
The first chart is the 15-min EUR/USD. You can see the ABC pattern easier.
What we can see:
The Point B is below the Asian low (red box). Why did I pick that one? If we had used the previous ABC pattern in the red box, it clearly shows that it was well on its way to Point D. It was too late to enter and is also against the strategy of trading the London Breakout.
Therefore we had to wait until that C to D move is finished. It did and became Point B and is now set up for the new C-D leg.
The second chart is a 5-min so we can see a little more detail.
You can see that the EUR/USD moved back into the red "Box" (Asian range). That was O.K., as we are still waiting for a break of Point B.
After 2 tries, he 3rd did push through B. You can see the price for Entry, Stop-Loss, Profit Target at FE 100.
Stop-Loss 1.3134 + 4 pips = 1.3138
Profit 1.3078 + 4 pips = 1.3082
Profit pips = 30 pips
Risk/Reward = 26/30
You can also see the Fib Extension tool from A-B-C. Made the aforementioned adjustment to pinpoint that tool to correspond with Point C.
I wanted to showcase this chart because it had 2 ABCD patterns.
Bounced off the Asian high and retraced to establish Point C.
Extended to the FE 161.8
The move A-B was small, so better chance it will hit FE 161.8
Leg C pierce the Asian high but bounced off the FE 61.8 of the 1st move.
Hit the FE 100.
Move A-B was 50 pips, and thus I only trade to FE 100.
You can set your own A-B size rules and trade to FE 100 or FE 161.8.
You can also decide whether you want to enter after the close of a 5-min candle above Point B, or enter earlier.
Always weigh risk/reward and size your lots to max risk tolerance. Sorry to repeat, but it's crucial and often is the difference between successful and not successful traders. You must have a plan. The ABCD can be calculated in advance, viz-a-viz all of the important considerations.
These patterns happen all the time. We just need to have volume to drive the extension. Marrying this technique with the London Breakout provides good opportunities.
The London Breakout is traded by a ton of traders. The difference is that you are now armed with knowledge on how to figure out what the market is doing and where it's going, with precision.
Attached are 2 charts.
The 1-Hour chart
Displays an ABC pattern. The move to break Point B (1.2772) and extend upwards is set up now.
The fib extension tool has the FE 100 at 1.2853
Caution, as the move needs to clear a hurdle en route.
As mentioned in a previous post, the 38.2% retrace price of 1.2797 reached May 7th is significant. Allow move to confirm above 1.2800, either with a 5-min candle closing or some other method to your liking.
Once that is violated, we can anticipate the move hitting the FE 100 price of 1.2853.
The next major fib is the 50% retrace at price of 1.2886.
Then the FE 161.8 price of 1.2955
Then the 61.8% retrace fib of 1.2972
This is not advice. Just a learning example.