GOLDEN RULES, FIB & PATTERNS

Bearish 

1. If daily candle closes below 100% Fib, then over next week or 2, we will see Price drop to TP1 - 111 Fib (98% of the time), TP2 - 127 Fib   (90 % of the time), TP3 - 150 Fib (50% of the time) and TP4 - 161 Fib.

2. If daily candle closes bellow 78.6 Fib but not bellow 94.2 Fib, then I will place Limit Buy order at 88.6 Fib with Stop Loss(SL) of  few pips below 94.2 Fib (or few pips below 100 Fib in case of Gold, because Gold likes to spike), and Take Profit(TP)1 will be 78.6 Fib (95% of the time), TP2 is 61.8 Fib, TP3 is 50 Fib, TP4 is 38.2 Fib and TP5 is the end of the  Kumo.  

3. If Daily candle closes at 78.6 or above but spikes to78.6 Fib, then I will place a Buy order with Stop Loss of few pips below 78.6 Fib,  and my TP1 is 61.8, TP2 is 50 Fib, TP3 is 38.2 Fib, TP4 is 38.2 Fib and TP5 is the end of the Kumo.

 

If Daily candle closes bellow 94.2 Fib, I will wait to see if it will close bellow 100 Fib and use Rule #1. It's that simple!

Same Rules apply for all time frames, all patterns and for all pairs! Here, I explained bearish pattern. Always check higher time frame. I use Daily chart when implementing Rules 1,2 and 3.

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Bullish

1. If daily candle closes above 100% Fib, then over next week or 2, we will see Price rise to TP1 - 111 Fib (98% of the time), TP2 - 127 Fib   (90 % of the time), TP3 - 150 Fib (50% of the time) and TP4 - 161 Fib.

2. If daily candle closes above 78.6 Fib but not above 94.2 Fib, then I will place  Sell order at 88.6 Fib with Stop Loss(SL) of  few pips above 100 Fib and Take Profit (TP)1 will be 78.6 Fib (95% of the time), TP2 is 61.8 Fib, TP3 is 50 Fib, TP4 is 38.2 Fib and TP5 is the end of the  Kumo.  

 

 

 

3. If Daily candle closes at 78.6 or bellow but spikes to78.6 Fib, then I will place a Sell order at 78.6 Fib with Stop Loss of few pips above 78.6 Fib,  and my TP1 is 61.8, TP2 is 50 Fib, TP3 is 38.2 Fib, TP4 is 38.2 Fib and TP5 is the end of the Kumo.

If Daily candle closes above 94.2 Fib, I will wait to see if it will close above100 Fib and use Rule #1. It's that simple!

Same Rules apply for all time frames, all patterns and for all pairs! Here, I explained bullish pattern. Always check higher time frame. I use Daily chart when implementing Rules 1,2 and 3.

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