On this chart we have USDCHF. By pulling out our FIBONACCI EXTENSION tool we can measure our PRICE TRAP zone to create ourselves some LOW RISK entry points in the market to REDUCE our loses.
The points to measure are from the LOW (0.92555) to the HIGH (1.03226) back to the most recent LOW (0.94450) and you will be able to notice that our PRICE TRAP zone fits nicely on the 50.0% FIB LEVEL.
Looking at this chart I believe PRICE will INCREASE into are zone then from then on carry on its DOWNTREND.
Once PRICE is in our zone I would place a SELL STOP order at the bottom of the RED BOX and TAKE PROFIT at the bottom of the GREY BOX, but also in case of any sudden market movements I would place a BUY STOP just so you can Profit from these unexpected SPIKES.
Always be aware of your RISK MANAGEMENT.
USDCHF
The points to measure are from the LOW (0.92555) to the HIGH (1.03226) back to the most recent LOW (0.94450) and you will be able to notice that our PRICE TRAP zone fits nicely on the 50.0% FIB LEVEL.
Looking at this chart I believe PRICE will INCREASE into are zone then from then on carry on its DOWNTREND.
Once PRICE is in our zone I would place a SELL STOP order at the bottom of the RED BOX and TAKE PROFIT at the bottom of the GREY BOX, but also in case of any sudden market movements I would place a BUY STOP just so you can Profit from these unexpected SPIKES.
Always be aware of your RISK MANAGEMENT.
USDCHF