This goes along the lines of.
- Selling rally’s in a downtrend (long are scalps)
- Buying dips in an uptrend (shorts are scalps)
The object here is as each day passes we measure the previous day with the Intraday fib, from there we look to its levels to determine if we have continuation if its levels hold or a possible reversal if its levels are broken. The levels being the (38.2, 50, 61.8).Same as I have labeled the ( short, pivot, long)
More about the Intraday fib first, Intraday doesn’t necessarily mean the high and low between 00:00GMT and 00:00GMT it just works out that way sometimes. Intraday simply means the previous move over a given 24 hour or so period. There will be times when you must include more than a 24 hour period and (fig.1) shows an example of this.
Here are the 2 rules to go by
- If price is above the levels and the levels hold the direction is up
- If price is below the levels and the levels hold the direction is down
Remember this is just an exercise to get you in the frame of mind so that you can see you own entry’s and won’t need anyone else. If you can identify the current direction you know which way to take trades, it will not make you win every trade but it will help put you on the right path.
Continued……………………..