You don't need to wait for that bounce off a strong support or wait for everything to happen before you enter a trade. Stick to a trading plan and you will go far.
Simple setup here - 1.21680 where the thick black line is is a strong daily support level. Once price pushed passed this we could have looked at positions to buy. However, as it is a daily level, if we flipped the chart onto daily we can see price only pushed through and tested, it didn't close above that level and obviously as we can see continued down. Now, 2 things here. 1, if you wanted a huge stop loss and happy to hold trades you could of added a sell at that level and waited it out. I personally prefer not to as it can take a few days to do anything. So, number 2, the trade I took.
We can clearly see the use of the Fib tool here, RSH (recent swing high) 100% and the start of the fib to the recent swing low where we saw the impulsive bullish move 0% on the fib. If we look across on the 38.20% we can see a clear structure from this level which would make a great sell limit. Due to being busy I missed that entry but was lucky enough to get in slightly here with a reduced stop loss of 25 pips. It's always good to target the -27.20% on these setups but as you can see I have another level in place which I find to be quite strong so personally had my take profit slightly higher. The trade would've hit final target anyway but sometimes it's not worth this risk for the sake of a few pips. RR on this trade is 6% so with risking 2% on the account makes this a nice 12% gain on the account on this one trade.
Does this work ALL the time?! no. If it did everyone would trade this way, it's finding what works for you and what you find is better so that the wins far out weigh the losses you have. 172 pip win here with a 25 pip SL. If this trade had of failed what would my loss have been? Probably around £255 but that's trading. Instead I've come away this week with a great win rate. Onto next week.
Simple setup here - 1.21680 where the thick black line is is a strong daily support level. Once price pushed passed this we could have looked at positions to buy. However, as it is a daily level, if we flipped the chart onto daily we can see price only pushed through and tested, it didn't close above that level and obviously as we can see continued down. Now, 2 things here. 1, if you wanted a huge stop loss and happy to hold trades you could of added a sell at that level and waited it out. I personally prefer not to as it can take a few days to do anything. So, number 2, the trade I took.
We can clearly see the use of the Fib tool here, RSH (recent swing high) 100% and the start of the fib to the recent swing low where we saw the impulsive bullish move 0% on the fib. If we look across on the 38.20% we can see a clear structure from this level which would make a great sell limit. Due to being busy I missed that entry but was lucky enough to get in slightly here with a reduced stop loss of 25 pips. It's always good to target the -27.20% on these setups but as you can see I have another level in place which I find to be quite strong so personally had my take profit slightly higher. The trade would've hit final target anyway but sometimes it's not worth this risk for the sake of a few pips. RR on this trade is 6% so with risking 2% on the account makes this a nice 12% gain on the account on this one trade.
Does this work ALL the time?! no. If it did everyone would trade this way, it's finding what works for you and what you find is better so that the wins far out weigh the losses you have. 172 pip win here with a 25 pip SL. If this trade had of failed what would my loss have been? Probably around £255 but that's trading. Instead I've come away this week with a great win rate. Onto next week.