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.

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...!

D at 78.6 retracement of XA or XC?

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

ReplyDeleteI 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.