Simple Zigzag + Fibonacci Strategy
Folks, I want to propose a very simple strategy here.
The basis of this strategy is the use of two traditional tools: ZigZag and Fibonacci.
Sale rules:
1. Drag the Zigzag indicator onto the chart and leave the default settings for now. Zigzags only help identify fluctuations, but any trader should be able to identify fluctuations with the naked eye.
2. Identify low (L) and high (H). Wait for price to break out of the lows to form (LL).
3. Draw the Fib retracement from LL to H.
4. If the price pulls back to your desired Fibonacci level, go short. I prefer 78.2.
5. You can use other filters like Rsi or Random
6. The best deal is:
a. Price spent a lot of time forming the LH leg
b. There is a lot of convolution around the H leg.
c. It didn’t take long for the price to return to the Fibonacci levels. At the same time, we don't want returns to be too quick as this could be institutional buying and a potential trend change.
Also note that for strongly trending markets, price may not retrace above the 50.0 Fibonacci level very often.
The opposite is true for buying rules.
Thread Rules: Spammers and trolls will be blocked without any warning.
Keep your graphics and posts at the heart of this strategy.
The basis of this strategy is the use of two traditional tools: ZigZag and Fibonacci.
Sale rules:
1. Drag the Zigzag indicator onto the chart and leave the default settings for now. Zigzags only help identify fluctuations, but any trader should be able to identify fluctuations with the naked eye.
2. Identify low (L) and high (H). Wait for price to break out of the lows to form (LL).
3. Draw the Fib retracement from LL to H.
4. If the price pulls back to your desired Fibonacci level, go short. I prefer 78.2.
5. You can use other filters like Rsi or Random
6. The best deal is:
a. Price spent a lot of time forming the LH leg
b. There is a lot of convolution around the H leg.
c. It didn’t take long for the price to return to the Fibonacci levels. At the same time, we don't want returns to be too quick as this could be institutional buying and a potential trend change.
Also note that for strongly trending markets, price may not retrace above the 50.0 Fibonacci level very often.
The opposite is true for buying rules.
Thread Rules: Spammers and trolls will be blocked without any warning.
Keep your graphics and posts at the heart of this strategy.
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