11# SRDC Method Level II With Fibo Trading System

SRDC Forex Trading Method with Fibo Lines

Submit by janusTrader (write by Orange Roshan)

 

The use of FIBO Lines

Below is a 1H chart showing a channel with FIBO lines. Please study it carefully and put

the same drawing on your GBP chart. The white spot shows how the last week's candles

have been bouncing on and over the fibo lines.

Without the Fibo lines, the price movement and candles might look very random at first,

but after you put it on, suddenly you can see the predictable candle movement.

In the pictures SRDC Method Level II with Fibo forex system in action.

How to set the Fibo Levels

We draw the fibo levels every MONDAY (blue fibos). These are going to be our

weekly levels, so we leave them fixed all week.



After that, we draw a new set of fibs on Tue (red fibos) and we move those

everyday to the beginning of the new day.

Please, pay attention that because we are in a downtrend we place the O level at

the top of the channel and the 100% at the bottom of the channel. Do the

opposite for bull trends.

OR has mentioned that he uses these levels for taking profits, therefore an idea

may be, enter trades based on channel/quadrants and take profits based on fibo

levels.

Once you have drawn your Fibo Levels:

- Get to know your currency pair, it tells you a lot about the market sentiment or what the

big boys are doing.

- Get a feel for it, and when you can find the rhythm, that’s when you have winning

trades.

It’s not luck; it’s anticipation and skill.

Remember: A penetration by price of the Channel lines or the Fibo lines is only

confirmed when the full candle completed. Simple price penetration is merely a

test.

Example on 30Nov. The 15th Candle:

Price penetrates the FIBO 61.8

-Enter long at 1.9589

-Then the next candle tests the Fibo 100.

-It can’t maintain the momentum and falls under the Fibo 100. Take profit here as it

shows momentum dropping.

-Final TP at 1.9669 at the closing.

80 Jedi Pips - Not bad!

 

AutoFibAutoTrend
Forex Indicator: AutoFibAutoTrend This indicator draws Fibonacci levels on graph.
AutoFibAutoTrend.rar
compressed file archive 889 Bytes

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