Fibonacci retracement filter

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giulio de meo
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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
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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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
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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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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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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Andrey Khatimlianskyi
Quote from drago babnik

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.

1. Because of "Use closed bars = true". Set it to false.

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0
Andrey Khatimlianskyi
Quote from drago babnik

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%

2. Still can't understand.

What moment do you analyze? The end of the fibo drawn? Or the end of the chart?

120% will never be reached, last price is always between 0% and 100%

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drago babnik
Quote from Andrey Khatimlianskyi

1. Because of "Use closed bars = true". Set it to false.

I apologize, but if I set "Use closed bars = true", every maximum and every minimum carrent value regardless of TF changes my Fibo properties.

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Andrey Khatimlianskyi
Quote from drago babnik

I apologize, but if I set "Use closed bars = true", every maximum and every minimum carrent value regardless of TF changes my Fibo properties.

You want to fix Fibo till the end of the bar, but analyze the current price?

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drago babnik
Quote from Andrey Khatimlianskyi

2. Still can't understand.

What moment do you analyze? The end of the fibo drawn? Or the end of the chart?

120% will never be reached, last price is always between 0% and 100%

I mean Fibo extension levels. In week 1, we fix Fibo to values from 0 to 100. Fibo values remain unchanged throughout the following week. Common Fibonacci extension levels are 61.8%, 100%, 161.8%, 200%, and 261.8%.