Direct from the desk of Dane Williams.
MT4 Fibonacci Hack
We talk a lot about risk:reward ratios and why it's important to target at least 1:3 on all of our setups.
While the math is by no means complicated to work out in your head, it's always a lot easier to visualise your target reward levels on your charts.
If you have an MT4 account, then you can use this cool MT4 Fibonacci hack from Trading Heroes to display a simple risk:reward calculator directly onto your charts.
I still use it from time to time and it works perfectly on yesterday's EUR/JPY daily zone bounce.
EUR/JPY Long
As always, we start with a higher time frame zone, this time a level on the EUR/JPY daily that we discussed yesterday.
EUR/JPY Daily:
As price has remained above the higher time frame zone, we were looking for an opportunity to get long.
Now bring up an intraday chart such as the hourly and take a look at the setup.
EUR/JPY Hourly:
As price started to bounce, see that first zone of short term resistance?
That's a perfect example of the type of zone that we'll look to use as an entry point if price comes back to retest it as support.
Something you can see happened at the end of last night's London session, allowing us to use the Fibonacci hack and target 1:3.
Edit:
1:3 was hit soon after publishing this one so instead of writing an entirely new blog, I'm just including the chart here.
EUR/JPY Hourly 2:
Best of probabilities to you,
Dane.
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