FIBONACCI MOTHER CANDLE BREAKOUT

Posts: 49 · #1 - January 19, 2020, 09:33:28 PM

Fibonacci mother candle breakout

This trading system is used to measure how far the potential market uptrend and downtrend formed from the break mother candle. And this system is also what I usually use to determine open positions when correction when the price breaks from the mother candle. Previously we must know what a mother candle is and what its characteristics are, a mother candle is a long or dominant bar candle where there are small candles inside. And we only draw Fibonacci when there is a candle that is able to penetrate the mother candle to be used as a measure of how far the market will stop. This trading system is very simple but profitable, but also must be observant so that the results are maximum.

For example in the EURNZD M30 pair below. Seen there is 1 dominant bullish candle that contains small candles that have been broken, so I immediately drew Fibonacci from the candle that was Breaked up to the top. And see the results the market stops at Fibonacci 261.8%

Levels of 50% to 61.8% are used as entry areas.
The 161.8% level is used as take profit 1
Level 261.8% is used as take profit 2

so first we have to look for a dominant candle first that contains at least 3 or 4 small candles (the more the better) then wait until there is just one candle that is able to penetrate the mother candle and then pull Fibonacci according to the explanation above.

Thus the opening of a technique that I can share. Hopefully useful and please try.

Linkback: https://www.forex.zone/trading-systems/10/fibonacci-mother-candle-breakout/2985/

Posts: 49 · #2 - January 28, 2020, 01:49:26 PM

look at the EURAUD h1 pair I found a bullish mother candle signal with 4 candle children in it and the fifth candle is able to break from the mother candle. and our focus is to sell when the price rebounds in the 50% Fibonacci area with a target in the 261.8% area and stop losses above the 0% Fibo bearish candle. good luck.

Posts: 49 · #3 - February 10, 2020, 01:01:22 PM

Hello everyone,,

This time I found the "Mother Candle Breakout" setup in the AUDJPY H1 pair, as we saw with me marking the area in the body break (purple arrow) as the beginning of forming the Fibonacci retracement.
On the other side it appears (red arrow) first the red candle break but I don't consider it to be a break because it's not just a shadow body. So a valid break is a break body. At the moment the price is approaching the 50% Fibo area, which means we can buy now at 73.300 with a target at 161.8% Fibonacci at 74,000, for stop losses we can place it at 73,000 or 0% Fibonacci. Good luck everyone

Posts: 424 · #4 - February 11, 2020, 09:10:22 AM

the measurement technique using Fibonacci is one of the best techniques that ever existed but it's just a different place of attraction

Posts: 49 · #5 - February 23, 2020, 04:53:22 AM

This time I found a very good breakout mother candle setup in the GBP / USD pair on the H4 timeframe, as we saw from the beginning a long bearish candle formed and filled with several small candles inside, and the fifth bullish candle can finally break through the long bearish candle That (red arrow) is where the first pull 100% Fibonacci down and it turns out the price has touched the first target of 161.8%, so our next target is to wait for correction to the 50.0% Fibonacci area and the target at 261.8% like in the picture below.

buy signal area 1.28800
The target buy area is 1.30500
Buy stop loss area 1.28200

Posts: 49 · #6 - February 25, 2020, 09:21:23 AM

GBPUSD goes according to plan, the price when it bounces to the 161.8% area now flies upwards, the next target is to the 261.8% area This strategy is quite simple but profitable. Congratulations on following this signal.

Posts: 454 · #7 - April 29, 2020, 08:05:44 AM

I have learned this technique but I don't really understand the point of finding a mother bar in which there are a few small candles and wait until someone breaks after the Fibonacci pull break to see the correction for open positions

Posts: 452 · #8 - April 29, 2020, 08:17:20 AM

when I learned Teroi trading, I used to hear this technique, in essence, this technique utilizes the power of stick candles and the character of buyers and sellers through confirmation of a candle. But now it is increasingly used in my opinion.