Daytrading the ABCD Fibonacci Pattern (Forex Trading)

Examples of applying the ABCD pattern on the 5min chart of the GBP/JPY pair throughout the trading day (non-news). Sign up to receive market insights, trading tips, and invitations to FREE webinars: http://bit.ly/t83NVg

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Education

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• fxKnight
• forex
• Knight
• fx
• trading
• currency trading
• currency
• financial
• investing
• foreign exchange
• technical analysis
• Fibonacci

[FXSwissTrader]

How do you determine if you should draw your retracement from top to bottom or from bottom to top? What indicator do you use to tell you whether you should plot your A to B as a downtrend or your A to B as an uptrend? Thank you.

[fxKnight]

@FXSwissTrader I use the prior trend, or when it doubt check a higher timeframe. You can also apply the Elliott Wave count of "3 up, 2 down" to determine where you are within the sequence.

[rockethead555]

Hello knight, nice Video. However, I can't figure out how you get the fibo scale above 100%, that is I see it start from 0% going up then when you establish point C, you say it goes to 161.8% which is below zero. Im using MT4 but cant't get that scale, my scale keeps going up starting from zero but nothing below zero. Am I supposed to use 2 scales ? appreciate the help, Thanks

[fxKnight]

@rockethead555 Visit our website, go in the free Forum, then in the Systems & Strategies section, and you'll see an article at the very top about Fibs that will tell you step by step how to make the modification. All we're doing is showing the Fibonacci retracements + extensions with a single mouse-click.

[rockethead555]

@fxKnight thanks for the response. Hey a quick question where does the 78.6% come from? I can't figure out where you guys get it, doesn't seem to result from a quotient. I know 50% is not a Fibo number either but used bec of convenience and practical reason. I'm trying to guess it comes from adding two previous fractions? 0.0557, 0.0902, 0.1458, 0.2359, 0.3818, 0.6177, 1.6180, 2.6180, 4.2360, 6.8541 I get all these from quotients . . .

[fxKnight]

@rockethead555 visit our website, click on Forum, then Strategies, and look for the Fibonacci thread at the very top... you'll find all the Fibonacci formulas. Bottom line, it works... try it out on some charts and you'll see. Where the levels come from is really secondary.

[johnTRP1]

@papismadze you can use their platform only in the resistance\support areas, forex brockers usually throw you out there cause they see your stops, but in binary options it works MUCH BETTER if you believe in turnaround

[mundaneaccountant23]

I've been using a forex bot that I got at bit(dot)ly/bUf58X to make me money in this market. It basically does all the work for you and there's a 100% refund if you don't like it! Thumps up if you've had a similar experience with this product!

[luckykingkong]

@rockethead555 click and drag to the desired level don't just click

[fxKnight]

@MYNEWMOKE You're trying to "anticipate" point C - you actually DON'T know for sure until after it happens (that's the very definition of a reversal). No need to catch the perfect top & bottom... the SAFE pips are in the middle! :)

[MYNEWMOKE]

mr knight.. great, great vid. ive watched it over and over again and each time i find something new in the video.but i do have a quick question.i can see how you find your points A and B.. but what im finding difficult is how do you confirm that point C will stick. Do you look for a certain candle to form at point C or do you look for the price to cross a moving average. Whats your particular confirmation. Very eager to read your response. thank you again for an A+ video.. Cheers..

[fxKnight]

@beermn45 You'll find plenty of free videos & webinars on our website, mate.