Hi friends
This method is not 99% accurate but surely above 70% accurate if you pick right confluence area.
Here is a strategy request
a friend came and asked me can you make an afl for these conditions?
I said-give me time-let me try and ask my friends who can look into it.
=========================================================
Conditions
a)Timeframe 4hourly chart (if not enough data try hourly chart)
b) draw trendline using significant highs or lows(minimum 2 touches)
c) draw support resistance lines
d) draw fibonacci retracement mark 50% and 61.8% lines
Confluence-look for confluence
confluence= a point or zone where
price is at trendline support,price is at fib retracement of 50% or 61.8% levelready bounce off,price is at normal support line
when price stands at this point where all these 3 meet,it is confluence
try to take entry on such a level
mark stoploss with a redline just below support line
use a value of about 10% of fibonacci retracement. for stoploss
normally reward comes more than 3
===================================================
High efficiency entry is by confluence.drawing a valid trendline is a bit of challenge.
I will posted an image .
Why there are two trendlines?
The trend has a speed and speed changes then different trendline comes into picture.Once a secondary trendline starts,price adheres to it as long as speed doesnt change.
regards
ford
This method is not 99% accurate but surely above 70% accurate if you pick right confluence area.
Here is a strategy request
a friend came and asked me can you make an afl for these conditions?
I said-give me time-let me try and ask my friends who can look into it.
=========================================================
Conditions
a)Timeframe 4hourly chart (if not enough data try hourly chart)
b) draw trendline using significant highs or lows(minimum 2 touches)
c) draw support resistance lines
d) draw fibonacci retracement mark 50% and 61.8% lines
Confluence-look for confluence
confluence= a point or zone where
price is at trendline support,price is at fib retracement of 50% or 61.8% levelready bounce off,price is at normal support line
when price stands at this point where all these 3 meet,it is confluence
try to take entry on such a level
mark stoploss with a redline just below support line
use a value of about 10% of fibonacci retracement. for stoploss
normally reward comes more than 3
===================================================
High efficiency entry is by confluence.drawing a valid trendline is a bit of challenge.
I will posted an image .
Why there are two trendlines?
The trend has a speed and speed changes then different trendline comes into picture.Once a secondary trendline starts,price adheres to it as long as speed doesnt change.
regards
ford
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