Hey traders, today I will show you a long opportunity which just occured.
We can see the price broke previous structure resistance and come to the next one. Then it had been rejected to the support (old resistance.)
For this type of trade set up, I like to use the Fibonacci levels for entry. 38,2 or 50% depends of the pair and set up with a first target at previous structure, exactly the highest candle close, no candlewick.
The 61.8 stop offers a good R:R. If you managed to enter at 50% of fibonacci I would recommend you to set the 78,6% retracement for the stop.
If the first target is reached there is several ways to manage your trade. You can use a trailing stop placing it to the previous structure low, or using a "10 candles low stop" or whatever according to your backtest.
I set up the extended target to the 127% fib of the initial swing. Here we can see it's just below the next resistance zone (which is a daily resistance zone), so it seems to be a nice target and a good opportunity.
Good luck traders, hope this idea and explanation enlight you on Fibonacci and structure trading!
If you have some ideas or questions please Ask on the comment section below or PM me!
We can see the price broke previous structure resistance and come to the next one. Then it had been rejected to the support (old resistance.)
For this type of trade set up, I like to use the Fibonacci levels for entry. 38,2 or 50% depends of the pair and set up with a first target at previous structure, exactly the highest candle close, no candlewick.
The 61.8 stop offers a good R:R. If you managed to enter at 50% of fibonacci I would recommend you to set the 78,6% retracement for the stop.
If the first target is reached there is several ways to manage your trade. You can use a trailing stop placing it to the previous structure low, or using a "10 candles low stop" or whatever according to your backtest.
I set up the extended target to the 127% fib of the initial swing. Here we can see it's just below the next resistance zone (which is a daily resistance zone), so it seems to be a nice target and a good opportunity.
Good luck traders, hope this idea and explanation enlight you on Fibonacci and structure trading!
If you have some ideas or questions please Ask on the comment section below or PM me!
Trade closed: stop reached