EURGBP - turquoise box represents our 4H impulse. We are now looking to get a 4H correction wave to the downside. When we move in waves the most common Fibonacci level for our wave (ii) is 78% we may have entered this a little early but at the time the entry was perfect it happens sometimes.
Take Elliot wave I used confluence with a major resistance level to identify the end of wave (i)
If you go a research Elliot wave 1,2,3,4,5 patterns you will see this is exactly the analysis. its about having patience.
This same analysis is what I look for and stick to for every trade.
The same goes for every analysis. The way Fibonacci works is it is there to identify trends. For example, if we retrace 100% of the initial impulse wave we do not have a trend we have a consolidation as we are bouncing between two price points equally. if we reject one of the key Fibonacci levels and the confluence with other techniques then we can identify a trend formin either wave (ii) or (iv) as in a trend they are corrective waves not impulse waves.
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Now EURGBP has proved it has a trend by rejecting the 78% fib on 1H time frame