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MACFIBO

This document describes the MacFibo trading system which combines a simple moving average crossover system with Fibonacci retracement levels to determine entry and profitable exit points. The system uses a 5 EMA, 8 SMA and 20 SMA on H1, H4 or D1 timeframes. It takes short positions when the 5 EMA crosses below the 20 SMA and long positions when it crosses above. Take profits are determined by dragging a Fibonacci retracement from the entry candle close to the prior swing high/low and targeting the 161.8% retracement level. Stops are the 5 EMA crossing the 8 SMA. Additional considerations are provided around monitoring 127.2% levels and significant support/

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Shrey Patel
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122 views5 pages

MACFIBO

This document describes the MacFibo trading system which combines a simple moving average crossover system with Fibonacci retracement levels to determine entry and profitable exit points. The system uses a 5 EMA, 8 SMA and 20 SMA on H1, H4 or D1 timeframes. It takes short positions when the 5 EMA crosses below the 20 SMA and long positions when it crosses above. Take profits are determined by dragging a Fibonacci retracement from the entry candle close to the prior swing high/low and targeting the 161.8% retracement level. Stops are the 5 EMA crossing the 8 SMA. Additional considerations are provided around monitoring 127.2% levels and significant support/

Uploaded by

Shrey Patel
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Moving Average Crossover FIBOnacci

MacFibo Written by : Sufian Said Opening Remark I like to make things super simple. One of the most simple mechanical trading systems out there are dual moving average crossovers. Entry is when xxMA crosses yyMA and exit the trade when yyMA recross xxMA. Simple right? Well, Macfibo is that kind of system.. However, what makes this system a bit different and unique from any pure moving average crossover system (entry and profit taking are all based on moving average crossovers) is its ability to objectively to pick a highly probable target even before a opposite crossover in which sometimes could lose you some pips, and sometimes turn your winning trade into a losing one. Macfibo combines the simplicity of dual moving average crossovers technique with Fibonacci price projections to pick price targets. Let me tell you now, it is not 100% (there is no 85% system, nevermind 100%.. if there is, Id love to hear it heheh), well you can be the judge of it anyway. What I am about to share is is the rawest and simplest version of the system. You are more than welcome to criticise, comment, test, share, trade (in your own risk) and by all means, try to improve it. Thanks. Chart and Tool Setup Timeframe : H1 or H4 or D1 (Never test it lower than H1 and higher than D1) Currency Pair : EURUSD (You may test other pairs) Indicators : 5 Exponential Moving Average (Red) 8 Simple Moving Average (Gold or Yellow) 20 Simple Moving Average (Black) Fibonacci Retracement Tool (Add 127.2% and 161.8%)

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Sell Entry When red MA crossed below 20sma DO following steps : a) Identify Candle CLOSE PRICE that confirmed the red/20sma downside crossover, mark that as POINT A. After that identify the HIGHEST PRICE/WICK of the current wave prior to the crossover, mark that as POINT B .

b) Drag your Fibonacci retracement tool from Point A to Point B . Mark price @ 161.8 as take profit level

c) Enter Short, TP @ 161.8 Fibonacci

Stoploss/Exiting Losing Short Trade When red MA crossed gold MA to the upside eventhough price hasnt hit TP, just exit the trade.

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Buy Entry When red MA crossed above 20sma DO the following steps : a) Identify Candle CLOSE PRICE that confirmed the red/20sma upside crossover, mark that as POINT A. After that identify the LOWEST PRICE/WICK of the current wave prior to the crossover, mark that as POINT B .

b) Drag your Fibonacci retracement tool from Point A to Point B . Mark price @ 161.8 as take profit level

c) Enter Short, TP @ 161.8 Fibonacci

Stoploss/Exiting Losing Sell Trade When red MA crossed gold MA, exit trade

Additional information worth considering : - Price also tend to reverse when price hits 127.2 fibonacci level - Watch out trades during news/announcements - Watch out when there is significant Support/Resistance is in the way towards the 161.8 level such as pivots, daily/weekly/monthly hi-lo prices etc - Price not necessarily exhausted at 161.8, it could continue towards 200.0% and/or 261.8% So thats pretty much it. Try it and see how it works (or doesnt) with you. God Bless. Any questions please do ask.
Disclaimer: I will not hold responsible for every trading losses you have endured using the trading system. Not once in the document that Ive mentioned this is the Holy Grail. Forex Trading is a risky business, it needs proper money management and trading discipline inorder to be successful.

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