Intraday Technique - Bouncing FIBO

I've developed an intraday technique which seems work for me. You can try also this technique, which actually simple but powerful and make sense.

This technique is a reversal trading type. The entry made is only in the first 2 hours after market open. What we're looking is a reversal made during the period. Sometimes we can have 2 reversal playing during the trade time (first 2 hours of trading time).

Playing this technique only need TOS Script from htttp://thinkscripter.com (TS_TradeZones) to help us identify the Hi/Lo for the trading timeframe.

The link is:
http://www.thinkscripter.com/2009/06/30/trade-zones/

I copy paste the script for you to save your time....

# TS_TRADEZONES
# http://www.thinkscripter.com
# thinkscripter@gmail.com
# Last Update 30 JUN 2009

declare fullrange;
input zoneStart = 1500;
input zoneEnd = 1615;
input type = {default NOTRADE, REVERSAL};
plot highBar;
plot lowBar;

switch (type){

case NOTRADE:
highBar = if secondsTillTime(zoneStart) <= 0 and secondsTillTime(zoneEnd) >= 0 then highestAll(high) else double.nan;
lowBar = if secondsTillTime(zoneStart) <= 0 and secondsTillTime(zoneEnd) >= 0 then lowestAll(low) else double.nan;
case REVERSAL:
lowBar = if secondsTillTime(zoneStart) <= 0 and secondsTillTime(zoneEnd) >= 0 then highestAll(high) else double.nan;
highBar = if secondsTillTime(zoneStart) <= 0 and secondsTillTime(zoneEnd) >= 0 then lowestAll(low) else double.nan;
}
highBar.assignValueColor(if highBar>lowBar then color.dark_red else color.green);
lowBar.assignValueColor(if highBar>lowBar then color.dark_red else color.green);
addCloud(lowBar, highBar);

Chart setup:

• 1 day 2 minutes
• DMI (14)
• Slow Stochastic (10,10)
• MACD (12,26,9)

The Rules :

Entry

• CALL : Swing Low --> draw FIBO from High (the High bar) to Low (the Swing Low)
• PUT : Swing High --> draw FIBO from Low (the Low bar) to High (the Swing High)

Tips:
Entry is perfect when make new Hi or new Lo

Exit (Target Profit)

• Fibo Retrace 50% (if day range (high-low) above 2, you can use Fibo Retrace 38.2% or even 23.6%, consider DMI (14) indicators to have confidence of the trend strength)
  

Stop Loss

• 1 tick (1/16) from entry price
  

The figures are:




















Goldman Sachs (GS):

• Swing High
• Play PUT
• SS(10,10) : bearish cross in the overbought area
• MACD(12,26,9) : bearish cross above zero line

Research in Motions (RIMM):

• Swing Low
• Play CALL
• SS(10,10) : bullish cross in the oversold area
• MACD(12,26,9) : bullish cross below zero line

Enjoy your trading....