I saw this setup on the daily for USD/YEN and it appears to show some potential. The bottom 100% fib sits at 112.60 which almost coincides with the low of Sept. 10th (112.56).
Well, it's a matter of preference. The secondary fib lines are really only extensions of the original so treat them as you would the extensions you are already familiar with. I would say that a trade with the highest probability of success is one in which price makes a completion of the secondary fib range at the 0%/100% fib line. Other signs of potential trades are where fib lines acted as previous support/resistance and the intersection of a line with a key price level, trendline, or another fib line drawn on a different range. Keep in mind that the momentum of price at the time has to be taken into consideration.
This isn't an exact science so it's good to have your stop losses in place and practice good money management. Price doesn't always bounce exactly off fib lines so a 5-15 pip deviation is expected (depending on the pair) but price should quickly move back beyond it. Price may also come right back and hover around the line for a few minutes and then take off. Price should not spend more than a couple of minutes (if that) above or below a fib level after it initially goes past it if it is to serve as support/resistance. That is the real test.
???
)
