The "Second Wave" Trade

[walterw 10]

I think we have come along way in such a short period. I believe we do need some backtesting, But Bravo !!!!!!!!

 

 

What I am enjoying of this process is how we got to combine very diferent aproaches, taking the best from each one and making a new creative aproach... you got FHR + Icon + momentum vs non-momentum + cci timing methods + fixed exits strategies + RRR etc etc... so I agree we need to backtest and forward test this... I got three years of data ¡¡ so it should be good... cheers Walter.

[Don4 10]

Same here walter!!

[walterw 10]

I believe looking for a 50% fib retracment is the most consistent way to play these setups. It's tempting to get in too early only to have the market retrace more and stop you out, or to wait to long and then chase. But consistently waiting for the 50% seems the ticket.

 

 

Hi Gary, I consider that your input here has some great value and I am making a parenthesis on my process to give some consideration into it...

 

I know fibos can predict very good accurate areas... My struggle is how to determine from where will I measure them... IF I can find a very simple and stupid way to draw fibos that we could use as a reference, it would be interesting to add them into our considerartion...

 

Its obvious that fibos ar drawn from pivot to pivot... the big question here would be : wich pivots should be selected to draw the fibos... cheers Walter.

 

PD : I also saw Therumpledone added a dynamic fibo indicator for TS... would be nice if we could get something similar for MT4....

[walterw 10]

Here I attach an example of a "second wave" trade that considers the fibo level.... any way this doesnt change the timing with cci... I believe it can help to show what type of pullback we are really looking for...(size of Pullback)

What I notice is that you have very small pullbacks (micropullbacks) some times that will even move cci on the other side of 0 but the real pullback wave still its not over... this fibo considerations could tell us what type of measure we expect in average for a pullback... and avoid taking "micropullbacks"... its another way of filtering out noise on this "pullback" instance of the setup... ill make video to explain.. cheers Walter.

[Don4 10]

Here you go walter, it might not be the one you want.

 

 

 

http://www.traderslaboratory.com/forums/attachment.php?attachmentid=2107&stc=1&d=1185817386

FiboRetracement3.zip

[walterw 10]

Thanks Don... it looks fancy... dont know if it would be usefull but we should take a look how it works...

 

Have you tried before, know how it plots ?

[Don4 10]

No walter, I really dont know much about.

[walterw 10]

I dont think we will need it... it repaints himself and doesnt give a reliable information lol

[Don4 10]

Ok .............

[walterw 10]

Here is an example from today, notice our pullback went right to th 50/61.8 area of fibo, giving more confidence to the trade...

[walterw 10]

Ok... I had been doing this evening some more research on the "second wave" trade and I like so far what I see... also I like what I am experimenting with fibos to give strength to our setup, so thanks for inputs to Gary (GCB) on this very interesting issue to add here...

 

What I want to explain now a little bit is how do I select the pivots in order to draw a fibo...

 

So to make it more easy I decided to explain it on a video... hope you guys understand me, any questions please ask me... I will try to explain.. cheers Walter.

Adding fibonacci.swf

[walterw 10]

Following this fibos retracements.... working like a charm ¡¡ cheers Walter.

[Don4 10]

I tell you, this just keeps working!

[walterw 10]

I tell you, this just keeps working!

 

 

Yes Don its really nice... I am dedicating the entire week too forex research, so far today I already did 10 hours worth of charts reading... In terms of this second wave trade, it clearly opens to more even simplier trades that happen all day... I dont know if I will mix this thread or start a new one with another paralel method I am seen right now (any suggestions ? )...

 

 

I have to make clear here that I am researching and I am not loyal to any prospect method here... so far at this point is ALL JUST IDEAS nice neet ideas.... maybe from here to one month I will make my mind and start paper trading some of this methods until end of year.... I expect going live january 2008...

[Don4 10]

I would just go ahead and start a new thread, Unless its using Fibs:D

[walterw 10]

I would just go ahead and start a new thread, Unless its using Fibs:D

 

 

Ok, I will do that... no it doesnt use fibs... actually its a very small icon that works also like a second wave fashion trade... very scalper type.... I will make that thread right now... see ya...

[Don4 10]

Ok ,that will work.

[Don4 10]

Here you go!

 

 

[walterw 10]

I love to see what I am seeing Don... ¡¡ You added the Hulls there ? they look cool ¡¡... notice on the second one how it setuped an Icon together with the second wave setup...

 

can you tell me the hull inputs there ? great stuff Don ¡¡ cheers Walter.

[Don4 10]

The Little one is Period 15, method 3 ,Large one is Period 200, method 3.