Fib Matrix Timelanes | Trading Extended Reversals
The Fib Matrix TimeLanes provide a wealth of trading opportunities throughout the trading day. One of the trades with the highest probability of success is the extended reversal trade. This trade set up produces a distinct pattern amongst the boxes on the individual time frames. If you look at the Fib Matrix you will notice that they align into a check mark (tick) shaped formation, with the point of the check mark being the lowest 5 min box (highest if the trade is a short). The trade is taken at a a support level below this box (above if it is a short trade), the level dependent upon the price action at the time.
Live Trade Examples of Extended Reversals
Below we have gathered together a series of live trade examples of this trade set up being executed. Pay attention to the position of the boxes and the pattern formed on the Fib Matrix.
GBPUSD +9 pips 2016-05-05 | Extended Reversal
This a nice example of an extended reversal on GBPUSD. This set up happens when a pair has been trending in one direction makes a new short term high or low and then retraces. As often happens the market often tries to retest the level. This creates the check mark pattern with the boxes. We look to take the 1 or 5 min level beyond the lowest 5 min box. This trade worked out very well producing a net +10 pips.
Forex Price Action | EURAUD +9 pips 2016-04-27
After a move up, EUR/AUD has broken to the short side. The grid pattern shows an extended reversal pattern, where the 1 min boxes are above the the lowest 5 min box (see red arrow) creating a checkmark pattern for the arrangement of the boxes. The trade initially goes against us but there is the opportunity to add at the the two column support on the 5 and 15min time frames. The add allows us to closed out our initial entry when it gets back to break even then take half at +7 and the balance at +11 giving us a net +9,
Forex Price Action | EURJPY +6 pips 2016-04-13
EURJPY is in a massively extended reversal the 5 min time frame. You can see the move has been quick because the 1 min boxes haven’t moved past the 5 min boxes yet price is over 40 pips away from the lead 5 min box.This is unusual and is largely because EURJPY had been pulled sharply higher by EURUSD. As always, when trading a cross pair it is important to check the parental pairs. In this case Euro has moved substantially away from its 1 min boxes and is now at resistance with EURJPY in a extended reversal pattern a short on EURJPY is taken which yields a quick +6 pips
Forex Price Action | EURAUD +6 pips 2016-04-05
EUR/AUD is just in an extended reversal setup. You can see this in the way the 1 min boxes are below the lead 5 min box and price is at a resistance level on the 1 min time frame.. Generally you would like to see a larger gap between the 1 min boxes and the lead 5 min box so the trade was taken with some caution in mind. +6 pips