DislikedHi everyone,
I'm new around here, just took read through most of this thread. Sure took awhile! There is so much great information. Thanks everyone!
Well I started paper trading and trying to locate some set ups. Here's one I found on the 4H GBP/JPY. It was a DBLHC (8 pips difference) at confluence, with a 50% retracement and a previous triple bar high. I entered 141.75 and got stopped out at 145.80. I could have let it ride for a lot longer but my stop loss was too tight.
Any comments? Willing to hear some positive and negative feedback so...Ignored
Welcome to the thread
Few comments for you. Firstly the DBLHC, we want there to be matching lows, this one is too far off for me personally on a 4hr chart(I would look for a 1-2 pip difference at the most personally). The higher the timeframe the more the difference can be.
Now the location was GREAT, based on the PPZ(which is that flop from the former resistance area you have circled turned into support. Just the price action should be cleaner IMO.
Also your fib is drawn wrong. As the way you drew it we would be looking for shorts. So the fib isn't relevant that way in this case. If you draw a fib from the swing high to swing low(meaning the 23.6 is the lowest number and 61.8 towards the top.) That means you are looking for price to retrace and go short at one of those numbers.
The number one best part about that area, was the strong price flip(ppz) that was located there).
keep at it and keep asking questions if you need help
Mike