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Newbie question : how would one know that 3427 would be the end of the downmove at the time, in order they draw their fibs accordingly to the daily top?Ignored
All depends on your trading style. If you are a trend trader then you wouldn't care. Trend traders generally have 2 types of TP's, either set ones at obvious places or none as they are "trend riders" and take it wherever price takes them.
Being a trend trader just means that you don't care where the bottom is as you would protect your profits at some place and would just wait for another entry after a retrace is completed and confirmed.
Picking tops and bottoms is not something most "newer" traders manage very well and that will come over time, as does anticipation of ranges and retraces. Just sticking to trading with the trend and loading back up on confirmed ends of retraces should keep you in profit form day to day sufficiently to survive in this business.
Right now the bounce is turning into a proper retrace here with the test of 4579 and if you haven't protected some of your profits yet on the earlier shorts, now it the time to do so. Either move your stops or take some money of the table. Don't ever give back hard earned cash to the market, there is always another opportunity to get back in.
