Daily activity 9/8

Today was less active in the market than I expected. No trades were opened or closed. I watched the StockTwits Brunch show from Saturday with RatioTrader where he showed how to apply Fibonacci ratios to many different markets. It was quite informative and helped me to create some preliminary rules for a new forex trading strategy. It appears to me that there are two primary ways to trades based on these ratios. First, RatioTrader looks at whether the 38.2%, 50%, or 61.8% retracement level works as support. If so, a break of the swing high can go to the -23.6% level or beyond. This is the first setup I'm looking for. The second is to take the retracement as soon as its confirmed. I draw the Fibo from the swing high/low to the current high/low. When the next bar opens I watch to see if it breaks the line drawn by more than 5 pips. If not I'll look to enter the trade as a short term reversal. I look at 1 hour charts, set my stop loss for 10 pips beyond the recent high/low, and am watching the following pairs: eur/usd, gbp/usd, usd/chf, aud/usd, usd/cad, usd/jpy, eur/chf, eur/gbp, eur/jpy, and gbp/jpy. I want to keep a 2:1 or higher reward to risk ratio and only risk .50% of my account balance per trade.