New Strategy Idea
****Please look at the ETH chart on the 1 min timeframe to see what I discuss more thoroughly. It would not let me post the 1 minute timeframe screenshot.
I stumbled across this two days ago and have yet to thoroughly test it out. I tested 5 trades and won 4 of 5 with a minimum 1-1.5 Risk Reward. Most were around the 2-3 RR mark though. I took an ETH trade at about the same time but did not follow this as it Is only an idea currently and I have not been on the look out for it. The strategy is this:
Look for a trending chart(I've only tested on crypto but this would probably work in other markets if it works in crypto).
Draw on a fib and wait for a test of the .618(other levels might work better but I have only looked for .618)
Jump down a few timeframes or so(Have not set a rule or guideline on timeframes yet, it might not be necessary)
Wait for a double bottom on the .618 fib level on our lower time frame and make sure the double bottom is divergent)
Set SL comfortably under the .618 with room to breathe and wick, set TP for lower time frame major level of structure, or higher time frame recent higher high that the fib level was drawn on.
Or pull partial profits out of the lower timeframe level and ride the recent high out.
Do the inverse for sell positions
I am not sure if this strategy is already implemented by many people, I simply discovered it and the idea seemed sound.
**The same setup happened on LTC at about the same time.
This is also in the very beginning stages of being tested so if anybody would like to test it/backtest it and has any input I would greatly appreciate it!
Thanks and happy trading.
I stumbled across this two days ago and have yet to thoroughly test it out. I tested 5 trades and won 4 of 5 with a minimum 1-1.5 Risk Reward. Most were around the 2-3 RR mark though. I took an ETH trade at about the same time but did not follow this as it Is only an idea currently and I have not been on the look out for it. The strategy is this:
Look for a trending chart(I've only tested on crypto but this would probably work in other markets if it works in crypto).
Draw on a fib and wait for a test of the .618(other levels might work better but I have only looked for .618)
Jump down a few timeframes or so(Have not set a rule or guideline on timeframes yet, it might not be necessary)
Wait for a double bottom on the .618 fib level on our lower time frame and make sure the double bottom is divergent)
Set SL comfortably under the .618 with room to breathe and wick, set TP for lower time frame major level of structure, or higher time frame recent higher high that the fib level was drawn on.
Or pull partial profits out of the lower timeframe level and ride the recent high out.
Do the inverse for sell positions
I am not sure if this strategy is already implemented by many people, I simply discovered it and the idea seemed sound.
**The same setup happened on LTC at about the same time.
This is also in the very beginning stages of being tested so if anybody would like to test it/backtest it and has any input I would greatly appreciate it!
Thanks and happy trading.
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