Complex trading system #12 (Fibonacci + trend line confluence)
Submitted by User on November 4, 2009 - 10:32.
My name is Raja.
Here is a low risk high reward strategy.
It works best on 4H and Daily chart for all currency pairs.
Buy or sell at the confluence of trend line support/resistance and 61.8% or 78.6% fib retracement of the latest swing.
Entry should be strictly in the direction of the long term trend.
Place your stop 20 pip below or above the next fib level.
Trade with three lots. Profit target for the first lot should be twice the risk. When first target is achieved, move the stop to break even and book profit on the second lot at next horizontal supp/res area.
Let run the third lot profit till the breach of trend line or with the help of your favourite indicator to confirm the trend reversal.