The fibonacci tool can be a great asset to your trading arsenal when looking for potential entry and take profit areas!
This trade we saw a clear break in structure followed by a retest of prior resistance with a 38.2 fibonacci level to use as added confluence. Fibonacci extensions were also used to identify take profit areas!
Small corrective pattern spotted inside large corrective pattern on a higher TF.
Safer entry on break of smaller pattern or potential scaling opportunity. I would always recommend bringing original stop loss to entry when scaling in. Trade safe and keep losses minimal!
Recent move executed on GBPNZD. An impulsive move upwards breaking structure to form a flag pole followed by a corrective pattern to form a flag.
Always look for multiple confluences to enter your trades. In this case we had the pattern itself at play as well as a potential order block and the 50% fibonacci level. A perfect scaling oppurtunity also presented...