Can using fibonacci, trend channel breakouts and pivot points have success trading?
This is what i have setup for GU currently:
I have the channel marked out and 2 fib lines. One was at the last high low swing and the second i went on the daily timeframe and drew one on the last bigger high low points, i noticed that it had some resistance at some points so i kept it.
My strategy is: When the price closes above the trend line ill enter. Ill use the fib lines as my exit strategy and ill place my short at another fib lines/pivot point/an area i think has had a lot of resistance. What do you think??
I think it is always a good idea to check other timeframes such as the 1 hour and 4 hour with your fibs and see if there is any confluence in your support and resistance areas, I also check 200 and 55 emas to see if they are in the same area too. It all helps to confirm your S&R levels.
Thanks for the posts all! An update: Price closed above pink trendlines, i entered long with T/P just under the fib, took 17.7 pips profit so not that bad.