Quite often, before I came across this tool, I would set random TP areas to aim for when executing a trade. To be honest some that i aimed for in the past were pretty wild and showed how greedy I actually was lol. In fact, sometimes I wouldn't even have a TP set because I just didnt know where to put it so I would just manually closed the trade whenever I felt like the profit I made was enough for me and quite often that led to loss after loss. The Fibonacci expansion tool is a great tool that I use to give me conservative and reasonable estimations of areas where I can close trades. It essentially estimates how far price may travel (up or down) following a retracement/pullback. Im sure this tool can be used for other purposes but this is personally what I use it for and it definetly stops the tempatations from taking over lol!
As shown in the video - I found a previous high and thats where i started to connect it to the most recent low and back again to the most recent high where I believe price will start going down. This can be done in the same way if you are taking a long position but by starting with a previous low, connecting it to a most recent high then back to the most recent low. I hope that makes sense aha.
To put into simple terms:
Short - High > Low > High
Long - Low > High > Low
Recently I have also been setting two areas of TP. Using the fib expansion tool I set my first TP at the 61.8% fib level and the second a the 100% fib level. Once it reaches the first target I would then make a descion on closing in partial profits and let the remaining run to the second target or close the positon entirely.
Hope this helped :)
comments and/or suggestions highly appreciated and I hope this helped atleast one person :)
As shown in the video - I found a previous high and thats where i started to connect it to the most recent low and back again to the most recent high where I believe price will start going down. This can be done in the same way if you are taking a long position but by starting with a previous low, connecting it to a most recent high then back to the most recent low. I hope that makes sense aha.
To put into simple terms:
Short - High > Low > High
Long - Low > High > Low
Recently I have also been setting two areas of TP. Using the fib expansion tool I set my first TP at the 61.8% fib level and the second a the 100% fib level. Once it reaches the first target I would then make a descion on closing in partial profits and let the remaining run to the second target or close the positon entirely.
Hope this helped :)
comments and/or suggestions highly appreciated and I hope this helped atleast one person :)