FX TRADING SYSTEMS by Graham Harrison
Exploiting Fibonacci Extension Zones
This article explains how Fibonacci extension zones can be used as context to exploit price behaviour, as part of an intraday rebalancing strategy, and shows how to define zones of tradeable probability.
Minimum Viable Strategies for Daily Range Volatility
In FX Trader Magazine Q3 & Q4 editions 2016, I outlined the behaviour of price inefficiencies around market structure and ‘market maker’ levels, with a basic quantitative model that delivers a minimum viable strategy using excursion &
40 FX TRADER MAGAZINE January - March 2018
expectancy concepts with an eye on automation.
In FX Trader Magazine Q4 2017, I showed how market structure moves
the inside and outside
range days to the periphery, and how a return to the daily range from extension can be traded using previously transacted levels of liquidity.
This article further explores the rich material around daily range volatility using Fibonacci extensions of the previous daily range to define zones of tradeable probability. A quantified approach to these extensions is summarised, together with some example price behaviours that exploit the opportunity presented by these extension zones. We can trade the
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