The more traders look at charts, the more they tend to have controversial feelings about the success of a current open trade...
With all this long introduction, it is only left to mention that this strategy will require from traders basic knowledge of use of Fibonacci tool. What is Fibonacci tool and how to use it? Simply Google "forex fibonacci" and you'll find a lot of information about it.
Choose any time frame over 5 min and less than 4 hours.
Currency pairs: any.
Indicators: 5 WMA
Look at the price waves. Find the last major move (rally or sell of). It must be the most recent and the most significant move.
Pull Fibonacci from A to B:
Once set, wait and watch the retracement from AB swing to unfold.
During the retracement there are three conditions to be met in order to consider trading:
1.) The price must touch 5 WMA.
2.) The price must at least touch 0.618 Fibonacci retracement level.
3.) The 0.382 Fibonacci retracement level must not fail. Here it means the price should not close below (uptrend) / above (downtrend) 0.382 retracement line. It can touch or poke it, but the level must withstand the "attack".
When all three criteria are met, enter once the candle is clearly closed above 5 WMA for Long entry, below - for Short.
Stop order is placed always 4-5 pips above (downtrend) / below (uptrend) the 0.618 Fibonacci retracement level.
Profit target 1 is set to 1.000 Fibo line and Profit Target 2 is to 1.618 Fibonacci expansion level derived from point A.
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