Using Fibs when next pivot level is too far away. Get our FREE eBook, “10 Essential Lessons for Successful Forex Trading”, plus sign up to receive market …

          

17 COMMENTS

  1. Why wouldn't you put a buy stop and sell stop (not knowing which direction price will shoot) outside of your trend lines to catch the whole move?
    I like that you explained how you wait for a retracement to the trend line sometimes, but saw it slowing down this time and got in long. Before that comment it was looking like you make up the rules to fit the chat history.
    great work.

  2. Sorry for the cynicism, but when you drew the fibbo you actually missed the top of the bar, so your top target was actually lower then where it should of been, and had you did a mechanical trade it wouldn't of been missed.

    If you're trying to find a target you should use the range of the consolidation above the breakout point, not fibbo. In this case using the range of the consolidation would of given you a much better and safer exit, most breakout traders do not use fibbo for setting targets.

  3. This was very helpful in seeing how to approach breakouts. I guess, if the second candle had gone south you would have reversed your Fib on the same breakout candle to get an extention target on the bottom side.. Is that right?

  4. I have a little more experience, and therefore a little more confidence. You have to learn the rules first, and establish some consistency in your trading – even if that means letting a few get away once in a while. Just like in music, once you know the notes and the scales well, you can start improvising a bit. Similarly, trading starts out mechanical, and eventually becomes intuitive. But it takes time, and practice.

  5. Fxknight, i like your videos, i really do, its just that you seem to be inconsistent in your trading strategy like in another video you said quote 'in FX more often than not you get a second chance to enter the position so dont rush in' – in this case, you jumped right on the breakout long candle. I know it is easy to check what you should do by looking at the candle thats gonna go after current one but the problem is that we just dont have that comfort to look at the future in reality 🙂

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