If you enjoy trading tops and bottoms, this chart is for you. Notice how the pair has been range trading in between the 100% and 138% Fib lines. Count how many times the pair tested its support and resistance levels. I’ve highlighted them with purple circles.
Do you also see the black numbers I’ve put on left side? Round 00 and 50 numbers act as natural support and resistance levels. I feel they are close enough to the Fib lines so I’m going to count them as current support and resistance levels as well.
Here’s a trade I’m going to take. Right now, it looks like the pair is testing support again. I’m expecting the pair to bounce off support and go up. I’m going to buy this pair now at 1.1868. My profit target will be the 100 % Fib line at 1.1954. My stop loss will be 5 pips below the most recent spike low (1.1846) which is 1.1841. So I’m risking 27 pips to make 86 pips. A 3:1 reward-to-risk ratio.
Do you also see the black numbers I’ve put on left side? Round 00 and 50 numbers act as natural support and resistance levels. I feel they are close enough to the Fib lines so I’m going to count them as current support and resistance levels as well.
Here’s a trade I’m going to take. Right now, it looks like the pair is testing support again. I’m expecting the pair to bounce off support and go up. I’m going to buy this pair now at 1.1868. My profit target will be the 100 % Fib line at 1.1954. My stop loss will be 5 pips below the most recent spike low (1.1846) which is 1.1841. So I’m risking 27 pips to make 86 pips. A 3:1 reward-to-risk ratio.
Attached Image
"Do or do not. There is no try" ~Yoda