1 Like
Hi @Mrproper0204,
What did you want to achieve at that particular time?
Here is my thought process and how I would have gone about it.
- On 1H time frame price is trading in a long-term range and reached Supply Zone although this trade had good qualities, I wouldnât have taken this trade as price is reaching to the zone and SL wouldâve been too big with little opportunity to move because of zone. In this situation it was better to wait for clear break and reset.
- On 1H time frame price is trading in a long-term range and reached Supply Zone, I would look for reversal to go long.
Hope this helps 
I usually put the Fibo on higher-high & lower-low; thatâs the general rule for me!
First think what fibs are about - you are trying to gauge a retracement of a move - how far back will price go before continuing the move.
Therefore in any chart that shows a significant move - regardless of TF you simple take (if price fell in the move) the nearest hi to the nearest lo.
The area you have highlighted price has entered and exited at the same level - look to the right - at the end of your chart - there is a significant move up - eyeball itâs low to high and then figure how far back came price - 1st time a previous hiigh - more buys, next time same thing, more buys.
Where do the buys become sells - likely below the 61.8 fib
Guys will boohoo fibs - thing is there are algos that donât - so oft time in lack of news or at week close they come into play.
Most recent example is this wks close on spx - focus on the hi/lo of the fib - that lo confirmed by the dbl bottom - then the only question was Friday - how far wld price retrace.
The bottom picking algos were programmed to sell at a fib.
Apologies for the long winded reply - there is a lot in your question.
1 Like
@MithcelRobert how do you normally choose which HH to start from when calculating the retracement move in a downtrend?
Do you just use extreme highs?
Hi @peterma, Iâm new with charts. May I ask, why did you point your lows closer to the âcloseâ rather than the actual low?
Hi monster,
Back in the day data was on a ticker, then later on a pager and now currently on live charts.
The first 2 gave the opening, hi, lo and close - the close is often seen as a marker - a hi/lo can be touched because of various conditions - maybe a specific order etc - the close is to be compared with âsettlementâ.
Anyways bottom line is where the Algos look - and oft times itâs the close.
Btw - the market changes - no data and TA takes precedence - then maybe some news and forget the fibs - eg yesterday.
There is no correct or wrong way to place a fibsâŚ
Fibs is just a measurement tool to know how much price has retraced or extended taking two price levels as a reference, normally the high and low of a price swing
The way of drawing It, Will depend on the strategy you follow