.14 and .86 fibs are a good place to start looking for the blowout liquidation of suckerz (1 day only at mattress king!!!! jk),
"you can only profit to the extent the other side is willing to lose"
So your idea of measured moves , since it is a zero sum game, is OK, but also know that you can scew the RR too if you're expecting more than one leg of puking by the other side.
It sounds like you may be doing some of that with your targets,
For instance if you have a smaller Double top pattern part of a larger pattern , then if the first smaller pattern pans out and continues on to start liquidating the folks on the wrong side of the larger pattern then you can stay on the ride longer.
The correct FIbs instead of 200% ,300% that I use for those two are actually 261 and 314, but that is just my own preference.......
Everyone needs to master their craft as an individual , no two traders trade EXACTLY the same. So pick up bits and pieces of the puzzle to create and test your own masterpiece. Just make sure you can spot the sucker at the table, because if you can't, it's you
Last edited by zr1trader; March 12th, 2013 at 05:55 PM.
I'm adding a few tools to the toolbox today. I need to give my analysis and trades more context. To help with this I will be also looking at the overnight range and opening range to help guide my entries and targets.
Short 93.24: target 92.85, stop 93.44
Pulling from the high or low of the day is always in play. Beyond that, I look as to what traded previously.
In general, there are two types of series. The first (consider longs for this explanation) will retrace a low to high, forming a higher low. When this hits its target, a higher high is formed. For the next move, the higher low and high are used for the next draw. The second type keeps the same anchor. In the above case the new draw would be from the original low to the new high. A more common form of this is from a swing high to a higher swing high.