Trading Retracements With Fibonacci Levels

Trading Strategy
This is a guest post by Ahmad Hassam

In the last article, we discussed how to trade breakouts with Fib Projection Levels. Let’s discuss that breakout situation again. But this time, let’s assume it fails. Again assume that breakout scenario where EURUSD price rise from 1.2200 to 1.2300. But you are less confident that the price action will continue to rise. You still want to take the trade with one standard lot (100,000 units).

You enter the market with 1/4 lot (25,000 units) at 1.2300 just like before. If the prices continue to rise just like before, you can still profit from that move by gradually adding to the partial position to target the exit of 1.2400. Now, suppose the price doesn’t rise.

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