I will try to post again here guys, I'm a bit busy lately. But I still reading stuff from this thread during this busy period and I think I'm a better trader than I was a few weeks ago.
This is the GBPUSD scalp trade that I took this morning with +30 pips profit, I could've made +100 pips with this trade, I'll explain why I didn't below.
I took the trade at around 1.308 (vertical line). The trend is up, making Higher High and the price bounced off of the 21 EMA and the 61,8% Fibonacci level, this is important for me to filter out bad trades because if the price broke below the 61,8% it could mean that the retracement is strong that it could retrace a bit deeper. But if the price is not touching the 38.2% Fibonacci level it could mean that the retracement is so weak and I'd not consider safe to enter there.
I also used the Fibonacci to to determine my TP. I drew the Fibonacci tool from the most recent Higher High/Swing High point to Lower High point. The Fibonacci tool told me that the TP is at 1.318 (1,618% level) but I decided not to place my TP there as the market is in a madness mode so I placed my TP at the Swing High, I thought I'll move my TP later as the price moves and put my SL on BE if possible but unfortunately the price moved so quick that my TP is already hit when I check my chart. But a win is a win. It's 1:1 RR.
I've been testing this Fibonacci "filter" in the last 2 weeks and it works wonder. Maybe I'll try to explain better and give more example later.
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The market currently is very volatile due to coronavirus, I saw a flash crash this morning, some pairs dropped 300 pips in the blink of an eye. Not only forex but in overall market, I'm pretty sure you guys also being aware of this. So be safe.
This is the GBPUSD scalp trade that I took this morning with +30 pips profit, I could've made +100 pips with this trade, I'll explain why I didn't below.
I took the trade at around 1.308 (vertical line). The trend is up, making Higher High and the price bounced off of the 21 EMA and the 61,8% Fibonacci level, this is important for me to filter out bad trades because if the price broke below the 61,8% it could mean that the retracement is strong that it could retrace a bit deeper. But if the price is not touching the 38.2% Fibonacci level it could mean that the retracement is so weak and I'd not consider safe to enter there.
I also used the Fibonacci to to determine my TP. I drew the Fibonacci tool from the most recent Higher High/Swing High point to Lower High point. The Fibonacci tool told me that the TP is at 1.318 (1,618% level) but I decided not to place my TP there as the market is in a madness mode so I placed my TP at the Swing High, I thought I'll move my TP later as the price moves and put my SL on BE if possible but unfortunately the price moved so quick that my TP is already hit when I check my chart. But a win is a win. It's 1:1 RR.
I've been testing this Fibonacci "filter" in the last 2 weeks and it works wonder. Maybe I'll try to explain better and give more example later.
–––
The market currently is very volatile due to coronavirus, I saw a flash crash this morning, some pairs dropped 300 pips in the blink of an eye. Not only forex but in overall market, I'm pretty sure you guys also being aware of this. So be safe.
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