We are currently in a descending channel with GBPJPY on the 4H chart. I am looking to enter on a pull back at 0.618, this also coincides with a supply and demand area that has been respected on numerous occasions (smaller light blue box). if price action suits I'll be entering shorts at this zone again, Stop is at the 0.79 fib which is handily outside the strong descending channel that is ensuing.
Target 1 - Simply 0.236 fib level, this ensures a 2R+ trade and is where I usually exit these types of trades.
Target 2 - the descending channel support, I'll leave a bit of my short running for this trade, however the majority of profit taking will happen at target 1.
Komen
SauliusBalciunas
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For me it seems the 4 h channel is at 50% fibo and it was not yet broken, do you think for a short 50% fibo is ok?
AdamWiIson
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Yes 50% is a viable entry however my plan is always to enter at 61.8, I may miss the move but long term this is better for my risk management
AdamWiIson
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I do miss a lot of these moves on charts showing similar analysis however I just stick to the 61.8, if I enter at 50 I will place my stop at 61.8 to ensure a 2R trade, so if it does actually go to 61.8 then I've been stopped on a would be winning trade! Hope that makes sense.