Quote:
Originally Posted by kagein
if you look at the 1 hour chart, you'll see that it was just a retracement, hence we were still in a down trend, i'm trying to understand your last question a bit more but im somewhat lost, what do you mean that there was know way of knowing where the top was?
since i started trading this method i can say that there have been very few times i have entered just after a top. most times i take some heat before the trade moves my way. the key is not to have tight stops.
anyway some clarification with what you meant?
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thanks kagein.
so the 1 hr chart is where we need to be for fib retracement trading? not the 15min or 30 min? because it would be a quite likely that the 4hr trend would supercede the 1hr, and so on and we would never be able to enter a trade?
my original question is how does a trader know when the swing/trend has reached its highest value/high point/top, so that he can get ready to short it with the 23.6% or 38.2 % fib as targets ?