Forexwatchman
Sergeant
- Messages
- 198
So here we go, this was a classic use of fibonacci and conservative patience. Basically I let the market react however it chose to, and waited to see a "line in the sand" or a point of resistance in which to draw a fib. Once that happened I saw that the retrace stalled out at 50, the mid point of the 38.2 and 61.8.
Now I did not enter there, I was waiting to see it reach 61.8. So I go in late when it reached the 0 line, but look at how price action then extended up to the mid point of 138.2 and 161.8, exactly as it should have based on fibonacci rules. Check out my crude screen capture. Unfortunately I wasn't able to get a screen capture while my trade was still active, but I took this one shortly after I closed my position for a 48 pip profit in 20 minutes of trading. Beautiful!
Now I did not enter there, I was waiting to see it reach 61.8. So I go in late when it reached the 0 line, but look at how price action then extended up to the mid point of 138.2 and 161.8, exactly as it should have based on fibonacci rules. Check out my crude screen capture. Unfortunately I wasn't able to get a screen capture while my trade was still active, but I took this one shortly after I closed my position for a 48 pip profit in 20 minutes of trading. Beautiful!
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