Fibonacci Retracement level 61.8%
Hi,
I made a total of $880 today ( before commission). Market was not really trending, but price movement was swift and decisive and I just felt that I have to be in the market. There was a huge rally from 10:00 till 11:00 am, but I missed it. I decided to wait for it to retrace. Price was at an overbought condition at 11:00 am and when it spiked down by 2 points together with stochastics crossing the overbought line, that was enough signal for me to short it. I shorted one contract at 1703, and another 2 at 1699. When priced touched the moving averages at 1693, I covered my shorts and this translated to $440. Price fell even further to 1685. At this point if you observe carefully, price has moved from 1706 to 1686, a 20 point move, in a matter of an hour. It is reasonable to expect the second half of the market session to concentrate on a retracement. I drew a fibonacci line from peak to trough ( 1706 and 1686) and planned my exit target at retracement level 50% which is at 1696. I longed 1 contract at 1688 and another 2 contracts at 1690 with my profit target at 1696. This trade lasted for around 80 minutes and I was automatically exited at 1696 with a profit of $400. On hindsight however, price retraced all the way to 1698 which is the 61.8% fibonacci level.