Fibonacci retracement filter

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giulio de meo
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Image 104

I was thinking about a new strategy to implement in CP.Maybe also someone can give some advices on how to improve it.

So the strategy works like this. We will draw a trend line on higher time frame like h1.

Then we will go to lower timeframe like M5 and we will try to best catch retracements.


To best catch retracements we will use fibonacci retracements. I will post a picture so it will be more clear for everybody.

Another confirmation of entry that i use when i trade, is volume. When Price approaching Fibonacci line, and there is decreasing volume, is Good confirmation.

PS: I still need to try this strategy and find best way to use it.

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0
drago babnik
Quote from Andrey Khatimlianskyi

1. Try to use "Use closed bars only" = true

2. Can't catch your idea. Please, illustrate.

2. Proposal 2 means the following:

Fibo # 1 is supposed to open BUY at Fibo level retracement (support) e.g. 40%

Fibo # 2 is supposed to open SELL at Fibo level correction (resistance) e.g. 120%

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0
drago babnik
Quote from Andrey Khatimlianskyi

1. Try to use "Use closed bars only" = true

2. Can't catch your idea. Please, illustrate.

Hi,

First to the first question.

Fibo1 (On retracement; TF = 1Day; Bars for range = 3; Fibo level = 40; Use closed bars = true; Open on individual signal).

I would suggest opening a new deal as soon as the Fibo level is reached. It currently works by considering the Fibo level the next day when the Fibo parameters change.

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0
Andrey Khatimlianskyi
Quote from drago babnik

I suggest adding a StdDev Channel for trading chanel breakout strategy. This can be added to the Oscillator1 options.

The suggested parameters for defining StdDev channel are:

- Time frame

- Period (bars)

- Deviations

- Distance (pips)


Trigger on

Upper limit (retracement or break out at Distance)

Lower limit (retracement or break out at Distance)


If linear regression is already built-in, then this combination is already possible.

What do you think about the proposal?

You can use MA filter with following parameters:

- MA Period = 1

- Distance type = Volatility * Coefficient

- Points / Coefficient = deviation you want to use

And set appropriate parameters for "Volatility for MA Filters distance":

- Indicator = StDev

- Indicator Period = bars number for StDev calculation


StDev channel changes on every bar, and only on the current bar we can see the actual values.

MA filter will work the way you want.

Only detail we can add — Break distance in points. But I'm not sure it is really needed. Do you?

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0
Andrey Khatimlianskyi
Quote from drago babnik

I tried all possible combinations with FIBO # 1 and FIBO # 2 on a few pairs but I failed to make progress.

I suggest we try the following:

1. Current operation, each high or low bar changes FIBO properties, even if FIBO TF has 1 day. Perhaps it would be better for FIBO to change its values with a delay, i.e. only at the end of the day or hour, depending on the TF.

2. Maybe FIBO # 2 would be better used for trading in trend correction. With the same trend (up), FIBO # 2 could be changed to "On correction (sell> = level)" or with the trend down (buy <= level).

1. Try to use "Use closed bars only" = true

2. Can't catch your idea. Please, illustrate.

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0
Sai Pratap
Quote from drago babnik

I suggest adding a StdDev Channel for trading chanel breakout strategy. This can be added to the Oscillator1 options.

The suggested parameters for defining StdDev channel are:

- Time frame

- Period (bars)

- Deviations

- Distance (pips)


Trigger on

Upper limit (retracement or break out at Distance)

Lower limit (retracement or break out at Distance)


If linear regression is already built-in, then this combination is already possible.

What do you think about the proposal?

This clubbing up with FIBO could be a nice combination. Let us give it a try. Thanks.

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1
drago babnik
Quote from giulio de meo

I draw channels/trendline to get the trend. But actually we already have filters todetermine trend so no worries.

Just the Fibonacci should be ok to get a Good enter and ride the trend. (For sure better tan stochastic i think).

I suggest adding a StdDev Channel for trading chanel breakout strategy. This can be added to the Oscillator1 options.

The suggested parameters for defining StdDev channel are:

- Time frame

- Period (bars)

- Deviations

- Distance (pips)


Trigger on

Upper limit (retracement or break out at Distance)

Lower limit (retracement or break out at Distance)


If linear regression is already built-in, then this combination is already possible.

What do you think about the proposal?

Avatar
0
drago babnik
Quote from Andrey Khatimlianskyi

"On retracement + opposite direction" mode is available in 2.24. Please, try it!

I tried all possible combinations with FIBO # 1 and FIBO # 2 on a few pairs but I failed to make progress.

I suggest we try the following:

1. Current operation, each high or low bar changes FIBO properties, even if FIBO TF has 1 day. Perhaps it would be better for FIBO to change its values with a delay, i.e. only at the end of the day or hour, depending on the TF.

2. Maybe FIBO # 2 would be better used for trading in trend correction. With the same trend (up), FIBO # 2 could be changed to "On correction (sell> = level)" or with the trend down (buy <= level).

Avatar
0
Andrey Khatimlianskyi
Quote from drago babnik

Currently, FIBO has defined one Fibo level.

For example, if we set the value to 25 and the price increases, the BUY deal will open at 25. The opposite deal (SELL) will only be opened at a falling price when the FIBO turns, also at 25.

I suggest a new independent Fibo level 2 (which can also have a value greater than 100).

Operating at a rising price:

Fibo level 1 -> Buy

Fibo level 2 -> Sell

Falling price operation:

Fibo level 1 -> Sell

Fibo level 2 -> Buy

"On retracement + opposite direction" mode is available in 2.24. Please, try it!

Avatar
0
Andrey Khatimlianskyi
Quote from drago babnik

Currently, FIBO has defined one Fibo level.

For example, if we set the value to 25 and the price increases, the BUY deal will open at 25. The opposite deal (SELL) will only be opened at a falling price when the FIBO turns, also at 25.

I suggest a new independent Fibo level 2 (which can also have a value greater than 100).

Operating at a rising price:

Fibo level 1 -> Buy

Fibo level 2 -> Sell

Falling price operation:

Fibo level 1 -> Sell

Fibo level 2 -> Buy

I've already added  "On retracement + opposite direction" mode to Fibo-filter, it allows sells on UP-trend/buys on DOWN-trend.

It think it will be enough, let's check it together.

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0
drago babnik

Currently, FIBO has defined one Fibo level.

For example, if we set the value to 25 and the price increases, the BUY deal will open at 25. The opposite deal (SELL) will only be opened at a falling price when the FIBO turns, also at 25.

I suggest a new independent Fibo level 2 (which can also have a value greater than 100).

Operating at a rising price:

Fibo level 1 -> Buy

Fibo level 2 -> Sell

Falling price operation:

Fibo level 1 -> Sell

Fibo level 2 -> Buy