Chart #3 | EUR/USD 60-min Ok, finally we’ve got that! The hourly trend has turned bearish. Let’s suppose that you’ve missed the entry right at nearest retracement after that has happened. If this is your case, then don’t be frustrated. Since both trends are bearish now, you may use nearest Fib resistance to enter short from the most recent swing. As you can see, later the market has gifted you with a 0.618 retracement. Let’s see what has happened after that… Look, the market just collapsed down. Where to exit and take profit is a very pleasant question after that, isn't it? You may apply any target – this is not the question of the current chapter. So what do we have: 1. Your context is higher time frame. It tells us where to enter – long or short. If the market is in a thrusting move – this is much better. 2. You use your preferred time-frame trend to filter the entry points. If the hourly trend shows bullish trend, while daily shows bearish – you have to wait for a deeper up move to a deeper resistance level. The major issue here is that the daily trend has to not break up. 3. If the daily trend still holds, then the market has reached some resistance, and the hourly trend also turns south – this is a moment to enter. Wait for the nearest retracement on the hourly chart to enter short. Here is how it works… But again – here we discuss purely riding the trend technique, and assume that the market is neither at oversold nor at overbought and no patterns take part in our trading – purely the trend. Chart #4 | EUR/USD 60-min P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.