sth interesting happened today w/ the GBPCHF. i had my fib retracements up on the 30 and 60 mins charts. the 0.618 support (going short) level coincided w/ P2 (2nd pivot level). that was my target. looking at the daily, you could see potential for a drop lower than the 0.618 retrace. however, based on past experience, more often than not the price bounces off the 0.618 level, especially on a day w/ no significant news whatsoever. considering this plus the fact that support gets somewhat tougher at P2 and that P2 was at the same level as the 0.618, i thought, ‘ok sure thing. that’s the target alright.’
i am now banging my head against the wall. ok i made my avg profit for the day BUT bloody hell! the price kept on going right through these 2 levels for a 100% retrace! i missed out on 70 additional pips so convinced was i the price would bounce first.
i won’t forget next time that fib levels aren’t brick walls.
food for thought.