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The Golden Pocket Fibonacci like a Boss
Updated
Buying the pull back is always tricky.
As a trader we deal with probabilities and try our very best to find high probability trades. We do this by finding confluence and various reasons to add to our trade setup.
The Golden Pocket
It is my ideal favorite zone to enter a high probability retracement after an impulse wave upwards.
It is the 61.8% to 65% zone (highlighted in red).
How to trade it
i) Find a swing low and swing high points
Bullish
- Swing Low to Swing High
Bearish
- Swing High to Swing Low
ii) Draw fib extension line
iii) Find other confluence reasons to enter the trade besides this e.g. RSI levels, previous support levels.
iv) Wait for confirmation of some form of support before considering entering the trade as it can sometimes just tear thru
As a trader we deal with probabilities and try our very best to find high probability trades. We do this by finding confluence and various reasons to add to our trade setup.
The Golden Pocket
It is my ideal favorite zone to enter a high probability retracement after an impulse wave upwards.
It is the 61.8% to 65% zone (highlighted in red).
How to trade it
i) Find a swing low and swing high points
Bullish
- Swing Low to Swing High
Bearish
- Swing High to Swing Low
ii) Draw fib extension line
iii) Find other confluence reasons to enter the trade besides this e.g. RSI levels, previous support levels.
iv) Wait for confirmation of some form of support before considering entering the trade as it can sometimes just tear thru
Note
ExamplesSometimes you don't get a chance at all to wait and might have to decide to just put a blind limit order.
Disclaimer
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