FIBONACCI VARIATION 2
This one sometimes takes a bit more guts as often you’d be trading
against the overall trend. In this variation you are looking to do a
short, quick little trade to simply catch 20 to 30 pips (sometimes
even less pips, but rarely much more).forex sato
Don’t do this when the market is moving rapidly, as often in a rapid
market swings only bounce the 38% or 50%. After keeping your
eyes on charts for a while you should be able to better recognize
such situations. Slower moving markets are best.
Remember, markets move in waves on all time frames, and so you
will see big swings. What you do is you look for what appears to be
a swing in progress of making a retracement. When it appears to
reaching close to a 38% retracement this confirms for you that your
swing has started to retrace. Simply look to jump in on a little wave,
and set your limit for the 50% level. This is a nice “High
Probability” trade to catch some pips as often it’ll plunge through
the 50% level. Now your greed may tempt you to go for a bit larger
profit – you’ll think of placing your limit at 62%, but don’t do it.
Yeah, often you’ll be leaving profits early, but it’s better to take
more consistent smaller profits.
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