All too often a mistake I see new traders making is taking pips targets based on how much they want to make rather than how many pips there are on the table.
Fibs Expansion can be a great way for picking potential target areas.
Here on a recent chart from GBP/USD there was a break out from a recently defined range and this would have been a indication we were looking to go long here.
You can see how the Fibs give us a good indication of where we can target here with the market showing a lot of respect for these levels, they also act as support once they have been broken.
This means we are looking for strong reasons to close the long around these areas and when these aras break we are looking to put SL just behind the recently broken one so we can ride the profits as far as possible.
Fibs Expansion can be a great way for picking potential target areas.
Here on a recent chart from GBP/USD there was a break out from a recently defined range and this would have been a indication we were looking to go long here.
You can see how the Fibs give us a good indication of where we can target here with the market showing a lot of respect for these levels, they also act as support once they have been broken.
This means we are looking for strong reasons to close the long around these areas and when these aras break we are looking to put SL just behind the recently broken one so we can ride the profits as far as possible.