Apologies in advance for my many posts... this is a question on "BAT Range Trade" On page 8 of the PDF file it states:
My confusion is the language of the "161.8 level". If i draw a fibo with the "Entry" 100% level set at the red line and the "Swing" 0% level up at the recent high before the short entry at the 1.9740ish level, then the 161.8 level should be south of my short entry? Then why is the trade no longer valid when it reaches the 161.8 level? If i've drawn my fibo correctly it would be well in profit and be categorized as a "Full Monty" trade??
What am i misinterpreting?
Thanks in advance for any clarification...hey it's 1:30 am Pacific and i've been up since this morning so i'm a bit sleepy. But i'm in profit w/pips locked in so i'll sleep well !
Cheers,
Thom
QuoteDislikedThis re entry can only take place if price stays within the boundary set by the 161.8 level. Once price hits the 161.8 level then this type of trade can no longer be valid. A trend is either in place or else if price returns to the trade pick up areas of 61.8 and 38.2 then a probable change of trend is occurring and it will break the BAT line and result in losses.
What am i misinterpreting?
Thanks in advance for any clarification...hey it's 1:30 am Pacific and i've been up since this morning so i'm a bit sleepy. But i'm in profit w/pips locked in so i'll sleep well !
Cheers,
Thom