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Hello everybody. I have some question regarding FIB Ret and Stochastic NFB strategy.
During a downward trend where there's a False Bar at Stoch <25, this basically indicates that there could be a possibility that the trend is still going to go lower.
We use the Fib Ret to confirm this. Once the Fib Ret of 0.618 is violated, we assumed that the downward trend indicated by the False Bar <25 is no longer valid.
Here comes the questions:
What kind of time frame do we have to wait to check if Fib Ret is violated?
For example, the price pullback up alittle after the False Bar occur <25. Once the Stoch >75, it started to pullback down again. The price is still below 0.382. Then, comes the second wave where Stoch >75, this time the price went above 0.382 but below 0.5. Are we still assuming that downward trend is still intact? Are we supposed to trade short (since 0.618 isn't violated) or we are going to wait until price reaches 0.618 then decide to short or long?
I would appreciate some comment on this. Thanks.
During a downward trend where there's a False Bar at Stoch <25, this basically indicates that there could be a possibility that the trend is still going to go lower.
We use the Fib Ret to confirm this. Once the Fib Ret of 0.618 is violated, we assumed that the downward trend indicated by the False Bar <25 is no longer valid.
Here comes the questions:
What kind of time frame do we have to wait to check if Fib Ret is violated?
For example, the price pullback up alittle after the False Bar occur <25. Once the Stoch >75, it started to pullback down again. The price is still below 0.382. Then, comes the second wave where Stoch >75, this time the price went above 0.382 but below 0.5. Are we still assuming that downward trend is still intact? Are we supposed to trade short (since 0.618 isn't violated) or we are going to wait until price reaches 0.618 then decide to short or long?
I would appreciate some comment on this. Thanks.
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