This post will show you how to trade using trendline breakout method and Fibonacci level as the target or take profit area. On this example I am going to show you how this system works for you. No indicator needed. We only watch for the significant swing highs and swing lows.
On the chart above, we are looking for short position after GBPJPY made a nice uptrend for several days. If we want to short, make sure we draw and connect our trendline connecting significant lows. See my white dash line above as the support trendline. We do not open position immediately after the trendline was broken by the price. We wait until the price broke the last swing low.
Draw the Fibonacci retracement tool from the last swing low to the highest point. The 0 number must be on the top and the 100 level must be on the last swing high. On the chart above, the 100 level is renamed to OP. The target is the 161.8 Fibonacci level which is the Target on my Fibo above.
Next time I will give you another example for this system.
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