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Walt...........
Re:Daytrading using fib numbers.
1)Trading a .618 retracement.....put the order just before the .618 to make
sure you get filled...use a .75 retracement as your stop. Once the price
hits the .618 and starts to move in your direction...you might lower your stop
to a few ticks beyond that last high or low....in fact, at that time you might
double your stop for an "anti-fib" trade(works especially well in the
S&P's)....My anti-fib trade is as follows.....price hits .618 and backs
off....then powers through the .618 for a total retracement or more.
IF you are going to trade fib numbers.....KEEP IT SIMPLE............
IF you start throwing in stoch..rsi etc....you will negate a lot of winners
and just create more anxiety within yourself.
I have found........... more decisions=more anxiety
Yes, I do use some other indicators for other entry/exit techniques.
There are a few that have worked beautifully for short term stock index
trading, but I try not to mix them all together....rather take each type of
signal as it occurs..........
Here's a beauty from Friday....look at Dec. Heating Oil....there was .618
retracement at 60.20...market hits 60.30 and dives like a bomb.....
If you put your order in to sell @ 60.00 with a .60 stop above 60.20...
you were risking .80*$420.00=$400.00 or so and getting out moc would have
brought in 1.80*$420=$800.00 or so per contract....
Of course, the ones that work are always beauties......the important point is
to
have a simple executable system that on each trade defines how to place each
order entry...stop...and exit.
Again......for me...more decisions=more anxiety......
Hope this helps....
Tom Stein
comfut@xxxxxxx
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