Each week on the 4 hour time frame charts: Monday and/or Tuesday will set the low of high for week's price action. If you can use the Fib. Ret tool and look ahead of current price action will retrace, then you can figure where the golden zone of 38.2% to 61.8% of Fib ret tool is:
Rules:
1) Measure low to high of last move on 4 hour chart.
2) Figure where the golden zone of fib ret tool is or between 38.2% to 61.6%
3) Place stop loss of 50 pips from 61.8% price line dropped down 50 pips- this might go further then 38.2% (by that is okay)
4) Trend for week will mostly start of Tuesday, Wednesday and Thursday- so this is a swing trade for a few days.
5) Targets can be as follows: Set 1st target is 1:1 (50 pips stop/50 pip target): 2nd target is 1:2 (50 pips/100 pips) and 3rd target is 1:3 (50 pips/150 pips)
6) Would discontinue or exit target Thursday or early Friday if Target is not hit and not hold it over weekend, but that is your choice.
Example on chart is: 1:3 Risk Reward of 50 pips stop vs. 150 pip target. (Buy Trade)- opposite can happen on (Sell Trade)
* I consider that a great trade set up and profits for three days of price action. You can always bring stop up as price action goes up, but you need to let trade breathe related to being a 4 hour chart.
Rules:
1) Measure low to high of last move on 4 hour chart.
2) Figure where the golden zone of fib ret tool is or between 38.2% to 61.6%
3) Place stop loss of 50 pips from 61.8% price line dropped down 50 pips- this might go further then 38.2% (by that is okay)
4) Trend for week will mostly start of Tuesday, Wednesday and Thursday- so this is a swing trade for a few days.
5) Targets can be as follows: Set 1st target is 1:1 (50 pips stop/50 pip target): 2nd target is 1:2 (50 pips/100 pips) and 3rd target is 1:3 (50 pips/150 pips)
6) Would discontinue or exit target Thursday or early Friday if Target is not hit and not hold it over weekend, but that is your choice.
Example on chart is: 1:3 Risk Reward of 50 pips stop vs. 150 pip target. (Buy Trade)- opposite can happen on (Sell Trade)
* I consider that a great trade set up and profits for three days of price action. You can always bring stop up as price action goes up, but you need to let trade breathe related to being a 4 hour chart.