Entry Demystified...
Many on this forum and others have asked about he specifics of entry with this method, as the idea of fib targets is fairly standard and well known.
My primary focus is watching for what I refer to as the elasticity of the market, or more specifically the tendency for it to stretch to a limit and retrace to either conservative fib levels or former support or resistance.
How can you do this?
As many of you see in my pics, I have BB's with a median average as indicators. Indicators are never necessary in trading, but when used properly aid in seeing the action in price itself.
I have mentioned on numerous occasions impulse waves, and signs of weakness forming near tops and or bottoms.
Think about the nature of an impulse wave and why it happens, either buyers or sellers are climbing aboard what they see as a trend, and taking profit on pull backs. They may also re-enter as the trend continues to take out the former low or high. There are only so many times they will re-enter as the probability for the trend to continue decreases with each of the herds impulses.
Herein lies the key. Ask yourself how many impulse waves have there been? How many have there been lately in other short term trends? Has price shown signs of weakening? Has it breached a former high or low above the median average?
The answers to these questions should tell you when to enter a trade, and the simplicity of fibs with a check and balance of looking into recent history for support and resistance price may snag on should reveal an accurate low risk target.
In concert with money management, and patience to get the favorable Risk to reward ratio you seek, profit will be yours.
