We draw a primary bullish retracement like this picture to find the line where XD (actually it is called retracement of XA) is 0.886 and construct our tradebox (means entry, stop loss and take profit).
That green triangle is primary bullish retracement. The tradebox is following Risk:Reward = 1:2.
But the best way to put the trade box is to use Fibonacci. You can use any Fibonacci tool but in this example “Trend Based Fibonacci Extension” is used to see how much BC has been extended towards D in terms of Fibonacci.
As you see our entry is at 0.786
It is rightly consolidating on 1.618 level but one could have take profit or partial profit at 1.618 levels instead of 2.618.
That green triangle is primary bullish retracement. The tradebox is following Risk:Reward = 1:2.
But the best way to put the trade box is to use Fibonacci. You can use any Fibonacci tool but in this example “Trend Based Fibonacci Extension” is used to see how much BC has been extended towards D in terms of Fibonacci.
As you see our entry is at 0.786
It is rightly consolidating on 1.618 level but one could have take profit or partial profit at 1.618 levels instead of 2.618.
Get trades instantly and discuss them with me at my Slack Channel @ unofficed.com/chat/
Our community is full with traders who actually trade!
Telegram: t.me/unofficed
Our community is full with traders who actually trade!
Telegram: t.me/unofficed