ABCD - 1234 System
By kickforex • Sep 11th, 2008 • Category: Forex Trading SystemsThis ABCD or 1234 system also uses Fibs and Trendlines. Trades are only place at C or 3 on one of six candlesticks formation that I trade.
When trading this system first draw all TLs(Inner, Outer and Long Term) to determine the current trend. After which you will find and draw your latest A.B. Spread fibs from A - B to project a C bounce off the TL which will be a retracement(38.2, 61.8, 78.6).
After the market retraces to TL / C ? / Fib retracement look to enter on a bounce. Place Stop Loss below C/TL in an Uptrend and above C/TL in a downtrend. Profit will be set 10-20 pips before projected D ? / Fib extension. Or use a Risk/Reward of 1:1.5 or greater.
If the market bounce at a 38.2 or 61.8 it is likely to go to a Fib 161.8, a bounce at a 78.6 is likely to go to a 127 extension.
Enter on any of the following candlestick formations:
Uptrend
1. Engulfing Bullish Candle
2. Tweezer Bottoms
3. Morning Star
Downtrend
1. Engulfing Bearish
2. Tweezer Tops
3. Evening Star
