Pound Question

[ownshook]

Looking over the GBP update prompted a question.
Clear downtrend however some of the rallies are pretty shallow and finding SK for many of them is not possible. Would you short at a singular fib level (with your trigger) or simply wait until a rally reaches SK? I guess I can also toss in if a singular fib lines up with a previous swing low prompting a stronger resistance level.

[Lifesong]

I think it all depends on the timeframe your trading on, because sometimes momentum is huge on higher timeframes and price seldom retrace back to SK. In a climate like this I'll either switch to lower timeframes or rely on single Fibs on higher timeframe and use the force of the momentum to trade with;:(

[FibMaster]

If you go to a lower time-frame, there are usually more swings to use, so you will most often find SK Fibonacci resistance for the smaller rallies.

Oh, I see Lifesong has just answered your question.

[ownshook]

Thank you for the replies. That was my concern really, dropping to lower timeframes. If the lowest I go, my timeframe is one hour, dropping to a 15 minute to pick up other swings is defeating the purpose of having a timeframe at all....no? I don't think I have seen Mr Fib grab lower swings and then go up in time. Is that even valid?

[FibMaster]

Thank you for the replies. That was my concern really, dropping to lower timeframes. If the lowest I go, my timeframe is one hour, dropping to a 15 minute to pick up other swings is defeating the purpose of having a timeframe at all....no? I don't think I have seen Mr Fib grab lower swings and then go up in time. Is that even valid?

Sure I do it, and it is valid. But do it only as necessary, to get more detail. If you do it too often, you get too many Fibonacci lines all over your chart!

This is a good way to find those FibLevels that are closer to the price action, to get into faster-moving markets.