The ideas that I trade by:

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Sandra
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Thank you MO for helping me.

So if I look at any 2 day extremes and mark them, the highest high and lowest low this is what I got. The second day was a innerbar( i think you call it). But this gives me a range.

I dont want to trade price until it breaks the range?
Upon doing so I marked with fibs the upper extreme at 100 and the lower at zero. Should I not be trading until it enters between the 50 and the extreme?
or like I did upon the retrace of the lower extreme for a short. If price reaches the 0 line and i double my lot size then my risk/stop would be reduced down to the 50 line?

Im trying, where im really stuck is the 1st steps to entering a trade...from the extremes. It always seems like everyone is deep in the cycles already and I struggle with the 1st entry and direction.

Thank you

S
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MightyOne
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Think of the fibo as a wallet, you open that wallet and see that you only have 35 'space dollars' to buy an extreme.

You don't want to spend all 35 'space dollars' if you don't have to so you ask the vendor if he will take <= 15 currency for the extreme.

Price action is like the vendors voice, you will eventually be able to tell that there is no way he would accept 15 currency for the extreme so you pull out your next highest bill, 25 'space dollars', and see if you can purchase the extreme for <= 25 currency.

You want to pay the least amount of 'space currency' for the most valuable extremes (the ones where price has not reached for the greatest amount of time).

Again, from the extreme, the fibo (wallet) is stretched to 15, 25, or 35 pips at maximum.
We then look to purchase the extreme when the vendors voice (PA) is in range of what we are willing to spend (15, 25, or 35 pips).

We then drag the 0% ret down, so that the 50% falls on a lower extreme, & again look to purchase just as many lots as before between the 50 & 0% rets.
When you double your lots your extreme will fall to the 50%.
The idea here is that maybe the vendor thinks he got a raw deal and is trying to up the price of the extreme (move away from it) & you, knowing that you have just robbed him, double your size and move your position to a 'fair' price.

Lasty you look at the vendor and say 'no hard feelings, I'll by another round at your price' & you attempt to squeeze out a few more drops of profit before liquidating everything.

2 days is just a minimum standard for purchasing extremes.

Just look at trading like you are buying quality in great quantity and you will do fine.

jmag4
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Hey MO, I really appreciate what you're doing.

I was wondering if it would be possible to show us an exact trade you took, posting what price/ how many lots (or percentage of your account) you took at each entry, to where you exited. I believe this would really allow me to understand what you are trying to teach.

Sandra
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ok, so I pulled out my 25 space dollars (25 pip) stop. I put the 100 line at the stop level and now have a 50 and 0 line left.

Im confused. I think I go short again with 3 more lots when price hits the 0 fib line and then it would place my stop at the 50? (net position for 6 lots)?

The 2xcc indi. How are you using it? 1/3 lines for direction or just lower lows, lower highs. 5o percent lines?
Im not even confident in my direction. But it was based on the last 2 days extremes and the low extreme broke so price must continue down? but to where? I dont know.

S
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Sandra
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hmm, after re reading what you posted.

I drag down until the 50 is on the low extreme.
My initial 3 lot short position is just below that.
So to add to it I need to wait till price is up between the 50 and 100 (my 25 pip stop) and buy 3 more lots, thus doubling my postion and reducing risk to the 25 percent area if I bought at the 50 line?

I need a drink.

S
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Sandra
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ok, MO says to make trading simple.

Im trying to figure out how to trade the 2xcc.
Inner bars, then breakout?

S
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Sandra
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I have given 1/2 my profit back but im holding.

S

Sandra
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Maybe I am supposed to move the 50 line to current lastest low extreme?
This seems to look better.
Price then come back to that area but im not adding yet.
Im trying to think this out, so after today maybe move 50 line to todays low extreme?

S
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MightyOne
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http://whiskey.findthebest.com/l/486/Bo ... el-Bourbon

to reply to your post today, will try again in the morning

MightyOne
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I don't think that you are getting it Sandra so we'll take it slow:

1) find a 2+ day position based on 3 position types.

3) stretch your fibo to 15, 25, or 35 pips

4) drop down to a small chart

5) when price is inside of your fibo, enter for your minimum size

(\$2000 * 0.0075) / 15 = 1 mini lot, if you stretch your fibo to 25 pips then you still trade 1 mini lot but your risk goes up by 0.5%.