Hi guys, I need to introduce a very simple system using the fibonacchi fan tool.
You can use this with any timeframe I prefer 4 hours.
Loe 2 points of support/resistance.
Lets use bullish example. This would mean that we must loe 2 resistance points.
Place first point of this fibo fan on the very first resistance and the next point of this fibo fan on the next resistance point.
Put the fibo fan so the lowest line of the fan becomes the downward trendline on these 2 resistance factors (lower extremities ).
The lowest point is also 38.2 fib line.
Once a candle sticks above this low line of this fibo fann proceed long. Your target is 68.2 fib line that's the highest fib fann line.
Sl should at least equal tp.
You are able to use different trade management now.
One alternative is to take two transactions, first one tp at 68.2 second one draw to breakeven and path.