Skunny did give some clues here, but I am hoping for additional clarity:
http://www.forexfactory.com/showpost.php?p=1760429&postcount=176
and from post # 189
What I did when I pulled the fib is define a trading range. Once this is defined we trade when the price violates our range. Because we don't know if it is a break out or not we enter the trade on penetration. In this case it pissed us off and sought out the inner fib supports. So we have 1 long position (penetration) (optional) and we add to the position as it works against us (because we know where it is going). In this case it chose the 62 as support most likely completing a cycle on a lower time frame. I did not study this trade but for a moment or two, I just wanted to get something up on the thread before I left, so let's not get too anal about the chart...lol
Again, you need to just study and not trade it, because if you have your fib drawn in the wrong place you will lose big doing it the way I just described.
:I was thinking perhaps entering a hedge trade right off the bat at penetration and then just closing the opposite side at say the 50% or 61.8% inner retrace. I would also then add another matching position going back to the penetration side at that time. Would also have to decide when to close the hedge if the trade headed on toward the extension off the bat too, but.... Sound too aggressive?? What do you guys think?
