Continuing with the retracement levels, here are a few examples on the faster
15 minute time frame. (each candle represents 15 minutes of trading)
I have used a 55 candle Moving Average (55MA) to easily find the starting point of the measurement.
Pick the lowest point below the 55MA line as the starting point of the wave up. Simply connect it with the highest point reached in the wave above the 55MA and voila.
If the highest point gets breached without the price going lower, simply redraw the fibonacci tool to connect to the new (higher) highest point. And then wait for the dip.
MOST IMPORTANT:
You must always have a set of defined rules for your trading strategy.
These rules must generate the very same setups and results for every person following it, without room for interpretation or bias.
Cognitive bias is unimaginably strong and might be one if not the toughest enemy on your path to becoming a successful professional trader. The only way to really defeat it is to not fight it at all. Making strict rules expressed in math will make sure you avoid the fight.
I recommend learning more about it by reading Daniel Kahneman: Thinking, fast and slow.
15 minute time frame. (each candle represents 15 minutes of trading)
I have used a 55 candle Moving Average (55MA) to easily find the starting point of the measurement.
Pick the lowest point below the 55MA line as the starting point of the wave up. Simply connect it with the highest point reached in the wave above the 55MA and voila.
If the highest point gets breached without the price going lower, simply redraw the fibonacci tool to connect to the new (higher) highest point. And then wait for the dip.
MOST IMPORTANT:
You must always have a set of defined rules for your trading strategy.
These rules must generate the very same setups and results for every person following it, without room for interpretation or bias.
Cognitive bias is unimaginably strong and might be one if not the toughest enemy on your path to becoming a successful professional trader. The only way to really defeat it is to not fight it at all. Making strict rules expressed in math will make sure you avoid the fight.
I recommend learning more about it by reading Daniel Kahneman: Thinking, fast and slow.
