General fib explanation:
0.5 level to enter long or short
0.65 level of stoploss to the trade
0.38 level is a level to take some profit off
-0.236 1st trade target
-0.618 2nd trade target
I go through the fibs left to right.
Fib1
Okay 1st fib on the left, this is just there to show you how I got to the lower anchor of the 2nd fib. Often the first micro wave is skipped when fibs are drawn on bigger charts, The 1st fib shows trades to target and then goes on to trade it's second target.
Fib2
Since price is going down after this first fib, we redraw the fib to the new high this gives us fib 2. If we look at current price, it went through the level a bit and then bounced. In the most recent week we see another touch of the lows but this time exactly at the 50 level of fib 2. This tells me the fib is drawn in the right way with the right lower anchor. The level also makes sense if you are into supply and demand zones read from the candles.
Fib3 is the sideways move that got us down here, it traded to target and beyond.
Fib4 is there because fib3 traded beyond target, we draw a fib extension from the earlier low of the previous fib. This is the fib we are currently in.
Scenarios:
These weekly buy zones are way too big to just buy with a stoploss at the 61 of 65 fib, so best to hop on a micro timeframe move long and hold one or more trades at breakeven down there.
If we trade the current fib extension to target, we also touched the 2nd target of the fib before that completing the sequence, I would give that level a bottom pickers shot. Below that is the S3 level, could also give good support within the buy zone. Now if the current fib extension gets broken next week, I redraw fib 3, high to low, minimum target is that short level at the 50fib. But I see weekly trend as being up, so the target is roughly 1.21 long on fib2.
Pretty insane to see price that way, let's see at the full 50 fib short were this is going, enough pips to grab between here and there. All I am saying is you might want to keep trades that you make down here on the micro timeframe open.
0.5 level to enter long or short
0.65 level of stoploss to the trade
0.38 level is a level to take some profit off
-0.236 1st trade target
-0.618 2nd trade target
I go through the fibs left to right.
Fib1
Okay 1st fib on the left, this is just there to show you how I got to the lower anchor of the 2nd fib. Often the first micro wave is skipped when fibs are drawn on bigger charts, The 1st fib shows trades to target and then goes on to trade it's second target.
Fib2
Since price is going down after this first fib, we redraw the fib to the new high this gives us fib 2. If we look at current price, it went through the level a bit and then bounced. In the most recent week we see another touch of the lows but this time exactly at the 50 level of fib 2. This tells me the fib is drawn in the right way with the right lower anchor. The level also makes sense if you are into supply and demand zones read from the candles.
Fib3 is the sideways move that got us down here, it traded to target and beyond.
Fib4 is there because fib3 traded beyond target, we draw a fib extension from the earlier low of the previous fib. This is the fib we are currently in.
Scenarios:
These weekly buy zones are way too big to just buy with a stoploss at the 61 of 65 fib, so best to hop on a micro timeframe move long and hold one or more trades at breakeven down there.
If we trade the current fib extension to target, we also touched the 2nd target of the fib before that completing the sequence, I would give that level a bottom pickers shot. Below that is the S3 level, could also give good support within the buy zone. Now if the current fib extension gets broken next week, I redraw fib 3, high to low, minimum target is that short level at the 50fib. But I see weekly trend as being up, so the target is roughly 1.21 long on fib2.
Pretty insane to see price that way, let's see at the full 50 fib short were this is going, enough pips to grab between here and there. All I am saying is you might want to keep trades that you make down here on the micro timeframe open.