Thanks, and good question. Let’s say we are looking at a markup that has retraced down to this fib “zone”, looking at the 5 min for entry.
First thing we know is, a NS entry wouldn’t be very close to the 61.8 level since we would need to see stopping volume there, no close below 61.8, and price to move [I]away[/I] from the low first.
So the question is, is a NS valid within this zone? Sure, that’s a trade I’ll take. In my experience, waiting for price to get back OUT of this zone before entering is probably slightly safer.
Just note, it’s always best to see a general increase in volume maintained as long as price is in this zone to suggest a bounce…besides the NS/ND candles of course.