1. Pattern is a must = bat, gartley, butterfly, head and shoulders and ABCD pattern
2. Fibonacci retracement must reach .618 but not above 100%
3. Identify the support and resistance above .618 is preferable this will give you guide on the potential dropzone.
Note :
Head and shoulder = if head measurment is 30 pips from the .618 Fibonacci retracemetnt then consider advance trading.
Harmonic Pattern = if point A mesurement is 30 pips away from .618 Fibonacci retraement then consider advance trading.
4. if more than 30pips then must wait Price rejection tip and Price rejection re- test tip. It is important that this rejection tip will follow the rule of .618 retracement. if by chance it will form another higher rejection tip then the retest tip must also be change.
5 Once you get the the rejection tip and re-test rejection tip then its time to use Moving average 20 and Moving average 50. entry point must be the crossover on 15min chart.
Note:
It is a good sign if re test price rejection tip will come first before the cross over on 15min chart
MACD is used to confirm entry point. the volume must be down to high or High to down. never trade crossover if macd is not in the right place.
Watch the video below to better understand my point.
No comments:
Post a Comment