Ratio Confluence in the 78.6 retracement of the bearish move. Plus the long term trend is bearish so we wouldn't be surprised to see the lows again.
Let's see how it turns out.
Comments
Technician
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This one deserves to be a winner, unluckily stop was too tight
DavoodWadi
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Thank you Technician,
I only use tight stops here. In trading they are above 88.6%.
IvanLabrie
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Then you nailed it...Why not go with 1 (or 2-3) atr stop?
DavoodWadi
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It's a good idea Ivan,
But since the whole setup is based on ratios, I would prefer stops based on ratios
IvanLabrie
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.886 fib from the XA leg as stop, or 2h atr from the last swing high, so 23 pips.
What do you think?
DavoodWadi
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Looks good.
Pretty chart by the way.
IvanLabrie
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Thanks! :D
I use structure as reference in general, and 1 atr stops from 1 timeframe above (say daily and then trade the 2hr chart).
I've noticed congestion zones often show the best spots to measure fibs (the spot where the most bars meet, or most recurrent price level in the ranges), same as crucial swing high/low points with no touches in at least 12 bars left or right.
Hope that helps (or maybe you already knew this stuff).
These fib levels I learned from David Alcindor, and they are very good btw.
DavoodWadi
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I'm never done learning Ivan ;)
And thank you for the time you put on explaining your methodologies.
There are pretty different awesome ways to use Fibs; probably because Fib's awesome itself!.
Time analysis using Fibs also interesting. I have started to put on what I've learned in the last months to use. I'm really optimistic about that.
IvanLabrie
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I was looking at those, I don't use fib time, but a very good friend of mine does succesfully (coondawg71 here).
I mostly use the time targets from Tim West's methodology in my trading (and his indicator pack, the rgmov, inside/outside bar and options expiration level indicators are awesome for Forex)
DavoodWadi
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Wish you luck in your trading Ivan,
And hope to hear from you again soon.