Just how far from fibo lines should I place stop loss?

[Azlan00IM]

I used fibonacci to make entry, place stop loss and take profit. In one tutorial at Babypips, I found that one way to use fibo is by placing the stop loss a little far from the next level from your entry.

babypips.com/school/elementary/fibonacci/placing-stops-with-fibs.html

The question is, just how far? 25 pips? 100 pips? I'm using H1 timeframe.

 

[dkami]

There are many way's to use fib's and systems, me personally I dont' use the extension as I don't like to try and pick top's and bottoms but I do use fib's for retracement therefor my SL will always be above or below the 100% fib (10-15pips on H1)

 

[Pharaoh]

Check out Forex Military School, Chapter 10. It's all about Fibonacci. Here's the first page...

https://www.forexpeacearmy.com/fore...0-chapter-10-part-i-mysterious-fibonacci.html

Always remember, Mr. Fib never lies (mostly).

 

[Desacete]

Fibonacci lines is an extremely complicated strategy, I tried worked it out once but didn't have any success in it.

 

[Addam]

While using the fibonacci indicator you need to know well about the background of this indicator. It has certain levels which depect the retracement in the price. You need to set the sl and tp above or below those levels. These retracements does not predict the larger trend reversal.

 

[William Barnes]

Forex being the largest currency market won’t be risk free and that is the reality. We can’t expect a world market will be fully risk free. Rather with high potentiality, it is highly competitive and risky today. But the fortunate fact that to help the foreign currency trader various risk management techniques have been developed and extensively used by traders today. And working with mini accounts can help traders to keep their risk minimum they think at a certain point of time, market can be extremely unpredictable and risky.

So, it is imperative that in the moment of extreme volatility and uncertainty, traders should use various risk management techniques like stop loss, trail stop, take profit or in aggressively hedging. However, how much pip you will set depending on your trading goals. Try to analyze your strategy.

 

[Nickluder]

You need to place your stop loss atleast 100 points above the fibo lines as the market shows fake trends which makes the traders confused. You have to wait and watch for some time when the prices come closer to these lines as early decision can be costly for your account. Stay profitable!