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

FIBONACCI PRICE EXTENSIONS
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entered immediately after market entry as a limit order. We do not
act until the market price triggers the prof it target level (or the stop-
loss, if the position turns to the negative). According to Table 4.7a,
this strategy provides us with three wins and one losing trade.
In the second setup, we use a trailing stop according to our def-
inition and do not immediately close out positions at the prof it target
level. According to Table 4.7b, we also f ind three winning trades and
one losing trade.
Figure 4.20 shows the underlying chart pattern in the Japanese
Yen cash currency including the four trading signals.
Table 4.7a
Calculation of Sample Signals in the Japanese Yen
from 01–00 to 11–00 Exiting Positions with a Profit Target 
High#/
Profit/
Low#
Loss in
Reference
Entry Rule
At
Exit Rule
At 
Points
H#1/ L#2
Entry buy
105.50
Prof it target
107.60
2.10
H#3/ L#4
Entry buy
105.65
Prof it target
107.10
1.45
L#5/ H#6
Entry sell
108.53
Stop-loss
109.38
(0.85)
H#7/ L#8
Entry buy
106.45
Prof it target
107.32
0.87
Table 4.7b
Calculation of Sample Signals in the Japanese Yen
from 01–00 to 11–00 Exiting Positions with a Trailing Stop
High#/
Profit/
Low#
Loss in
Reference
Entry Rule
At
Exit Rule
At 
Points
H#1/ L#2
Entry buy
105.50
Trailing stop
107.71
2.21
H#3/ L#4
Entry buy
105.65
Trailing stop
108.53
3.88
L#5/ H#6
Entry sell
108.53
Stop-loss
109.38
(0.85)
H#7/ L#8
Entry buy
106.45
Trailing stop
106.70
0.25
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