Thursday, January 10, 2013

A Simple Rules

Original Time Frame: 1 hour

Find an impulse leg, name it X to A.

Then for the B point:
Minimum retracement is 38.2 of XA.
Maximum retracement is 61.8 of XA.

C is the extension to a minimum 127.2 of XA but no candle close beyond 141.4.

Move the fib at the A point to a completion of C to find the 78.6 retracement of XA.
Draw the fib from X to C to find the D at the 78.6 retracement. That is the PRZ.

Stop loss is 10 pips above/below X.
Target 1: 38.2 of CD
Target 2: 61.8 of CD

Enjoy...!

2 comments:

  1. D at 78.6 retracement of XA or XC?

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  2. Yes, you are right omar. It should be 78.6 retracement of XC.

    I should change the sentence to "Draw the fib from X to C to find the D at the 78.6 retracement.", I think that would be easier to understand.

    Thank you for your correction.

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