Candlesticks, Fibonacci, and Chart Pattern Trading Tools : a synergistic Strategy to Enhance Profits and Reduce Risk

Table 4.3
Trading Signals
High#/
Profit/
Low#
Loss in
Reference
Entry Rule
At
Exit Rule
At 
Points
H#1/ L#2 Entry 
sell
1,427.50
Stop-loss
1,449.80
(22.30)
H#3/ L#4 Entry 
sell
1,386.20
Reverse 
buy
1,385.50
0.70
L#4/ H#5 
Reverse buy
1,385.50
Prof it target
1,468.50
83.00
H#5a / L#6 Entry 
sell
1,517.50
Prof it 
target
1,351.30
166.20
H#7/ L#8 Entry 
sell
1,467.00
Reverse 
buy
1,419.00
48.00
L#8/ H#9
Reverse buy
1,419.00
Reverse sell
1,456.00
37.00
H#9/ L#10 Reverse 
sell
1,456.00
Trailing stop
1,418.00
38.00
L#12/ H#13
Entry buy
1,449.00
Trailing stop
1,468.00
19.00
L#16/ H#17
Entry buy
1,384.20
Trailing stop
1,430.00
45.80
c04.qxd 6/16/03 4:17 PM Page 62

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FIBONACCI PRICE CORRECTIONS
•
63
The nine sample trades in the Japanese Yen cash currency have
been prof itable overall. Six trades ended up in wins, and only three
trades were losing trades. Prof its totaled almost 9.00 points, which is
a promising result for 11 months of sample calculations.
To interpret the results properly when trading the Japanese Yen
against the U.S. Dollar, readers must keep in mind that falling prices
indicate a stronger Japanese Yen and rising prices indicate a stronger
U.S. Dollar. Buy signals in our calculation, therefore, refer to a spec-
ulation on rising prices, which means a stronger U.S. Dollar and a
weaker Japanese Yen. Sell signals refer to an opposite speculation on
a stronger Japanese Yen and a weaker U.S. Dollar. Thus, we buy and
sell U.S. Dollars with reference to the Japanese Yen as the base value
for our calculation of prof its or losses.