FOREX Day Open Fibo
Forex Strategy Day Open Fibo
Forex Strategy Day Open Fibo - a very simple but very profitable trading strategy for the currency pair GBPUSD or other highly volatile pair, it is based on the use of the opening prices of the trading day and on static Fibonacci numbers: 34, 89, 144, 233.
explained the strategy Forex Day Open Fibo an example:
assume that the opening day of the pair GBPUSD 1.6447
To determine the critical levels, calculated on a static Fibonacci numbers - these numbers to add and subtract them from the price of the market opening that day:
We obtain the following levels:
HL1 = 1.6447 + 0.0034 = 1.6481
HL2 = 1.6447 + 0.0089 = 1.6536
HL3 = 1.6447 + 0.0144 = 1.6591
HL4 = 1.6447 + 0.0233 = 1.6680
HL5 = 1.6447 - 0.0034 = 1.6413
HL6 = 1.6447 - 0.0089 = 1.6358
HL7 = 1.6447 - 0.0144 = 1.6303
HL8 = 1.6447 - 0.0233 = 1.6214
Forex Indicator DayOpenFib.mq4, calculated and painting these levels on the chart, it is necessary to impose a timetable 2 times :
first time set the up = true (building levels above the opening price)
The second time - up = false (building levels below the opening price).
For ease of installation can download the template for the Metatrader 4 forex strategy together with the indicator at the end of the strategy.
to enter the market, you must install 3 pending orders to buy and 3 pending orders for sale , after the discovery of new trading day:
1) Set of 3 orders Buy Stop lots equal to the level of HL1, a safety stop-loss level is placed at the opening of the trading day (red line) .
profit target following: TP1 = HL2, TP2 = HL3, TP3 = HL4.
2) Set 3 Sell Stop order at HL5, a safety stop-loss level is placed at the opening of the trading day (red line) .
profit target following: TP1 = HL6, TP2 = HL7, TP3 = HL8.
3) If the first triggered deferred Buy Stop order is 2 versions of :
a) transfer the warrant Sell Stop at the level of the opening of the trading day, and levels of profit and stop-loss move to a SL = HL1, TP1 = HL5, TP2 = HL6, TP3 = HL7. The converse is true for the case when first worked Sell Stop order.
Once achieved the profit target TP1, reinstall the remaining 2 orders to breakeven. Once achieved the goal TP2 - swap the stop-loss order at TP1.
b) transfer order Sell Stop at the level of the opening of the trading day, and stop-loss SL = HL1. A 3 profit targets portable to the first level of profit, ie TP1 = TP2 = TP3 = HL5
wish, at first triggered a pending order for the day - set a trailing stop order quantity of 3 points 40-45.
not triggered orders are deleted at the end of the trading day.
If at the end of the day were not closed by the order - they should be close to market price.
Based on their test last month - September 2009 (1 to 18 inclusive number) profit is:
case a) - about 1400 points profit! - a more risky way of trading.
case b) - 1200 pips! - a more conservative way to trade.