GBP/USD, 4-hour
see attached file for chart
Long or Short: Short
Entry Point: 1.6300 (near .500 Fib)
Stop Loss: 1.6350 (above trend line)
Profit Target/s: 1.6200, 1.6150 (take half position off on each target)
Reward-to-risk Ratio: 2.5:1
Risk percentage: 2%
Indicators used: Just Fibonacci lines
Trade Rationale:
I’m mostly a technical trader (for now, since I’m still a newbie!) so my trade setups tend revolve around price action. Since the trend obviously down as indicated by the lower highs and lower lows, so I tried to look for short trades. I think selling when price tests the falling trend line or the .500 Fibonacci retracement level is a good idea, as it gives a nice reward-to-risk ratio.
Trade Adjustments: Even though this is a set-and-forget kind of trade, you have to close at the end of the week when the market closes to avoid weekend risk!
Hope the idea makes sense! :57: