Short based of channels and fibs

My Entry: 63.50 - 64.50 (any entry in that range is okay)
Stop Loss: 66.02
PT: 59.00
Risk/Reward: ~1:266

Ive been planning this trade for the past 3 weeks and it is finally coming to fruition. The reason the r/r out of the gate is slightly under 1:3 is because I would rather keep my inital stop slightly looser, so that in case of a slight over extension I can be slightly more flexable at first, wait to see the trade go in my direction and then tighten the stops down and potentially add. I will post updates as that happens for anyone that is planning to participate in this trade. If the price flips where my projections tell me, I will pull my stop to 65.00 and add size so that the r/r will shift to about 1:4.
So... in this scenario it appears that you're assuming a move to $63.50? I think I'm confused. If you were sure you'd just go all in on lotto calls so, can you explain the idea again for people like me who don't get it? Thank you.
+1 Reply
craigjpercoco gingerheadtrader
@gingerheadtrader, Im not sure that move to 63.5 will happen, but I use fibs on backtested data to give me zones to enter positions and my zone is 63.50-64.50. So I will enter short there assuming the move follows through.
This is ATH territory, what makes you think it will fail to breakout? Just wondering, i've been watching for a potential long scenario, although a correction down is definitely possible too, as well as a break-down
craigjpercoco lomick2090
I use fibonacci levels and physiological trends that I have backtested to predict trend reversals. Im pretty sure the move to 63.5-64.5 but it only fits my system when it hits those levels, so I will be waiting to short there.
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