Identified overall trend on the 4 hour chart, in this case the market was a downtrend, therefore I was looking for a short position.
Whilst still on the 4 hour chart, I looked for the last MAJOR move to the downside and located the SWING HIGH and SWING LOW. Once located, I used the FIB tool and went from my located SWING HIGH - SWING LOW with the tool.
After I had plotted where I wanted my FIB levels to be, I identified an ascending triangle in the current trend and from there, plotted it onto my chart and closely watched the market until further indication. Soon I saw price was squeezing towards the end of the triangle and aiming towards the support area within the triangle with SHORT candles forming. Then when price hit the 61.8% FIB level as well as touching support, I placed a trade with a 2:1 RISK REWARD ratio.
Please let me know what you guys think of this trade set-up :)
Whilst still on the 4 hour chart, I looked for the last MAJOR move to the downside and located the SWING HIGH and SWING LOW. Once located, I used the FIB tool and went from my located SWING HIGH - SWING LOW with the tool.
After I had plotted where I wanted my FIB levels to be, I identified an ascending triangle in the current trend and from there, plotted it onto my chart and closely watched the market until further indication. Soon I saw price was squeezing towards the end of the triangle and aiming towards the support area within the triangle with SHORT candles forming. Then when price hit the 61.8% FIB level as well as touching support, I placed a trade with a 2:1 RISK REWARD ratio.
Please let me know what you guys think of this trade set-up :)
Trade closed manually:
Those of you who may of took the trade on EUR/USD following my analysis will be seeing some good profits, we have managed to achieve half of the target profit, but now I am starting to see that price is starting to reverse against us. I have now exited with profit. I hope you all made some good profits on this set-up :)