I trade like that. I have modified the fib settings to give me targets for 138.2, 161.8 etc etc. I use the H4 and Daily for my context and enter on the H1. So I draw H4 and Daily fibs depending on the best fit, then I set my first target at the H4 fib extension and the second on the daily fib extension that corresponds with the retrace.
The theory is the deeper the retrace (read 'market fear'), the stronger the market greed. If it retraces to 38.2, not much fear, not so much greed to target, I am at 138.2. If it retraces to 61.8, that's more fear, so more greed takes us to 161.8. I don't interfere with the trade once I've entered, and I either get stopped out or it reaches target...my hit rate is pretty decent once I exclude entry mistakes/misjudgements. And the RRR is from 3:1 to as much as 6:1.
