Use Fib projection on small time frame (1 Feb 07)

[kingking]

The attached fig shows how I use Fib to play the small time frame (60ticks chart). Price consolidate on a 20 points range from 9:30 – 10:15. Then, price trend up and make the day high of 12605 at around 10:30. For me still no trade yet as I am waiting for an opportunity to long for price pullback to the upper edge of consolidation area. I make a fib projection from the low in the morning to the high. I pay particular attention to 61%, 50% and 38% (the upper edge of the consolidation area) (see blue arrows). When price hit these levels for the first time I buy it with a 12 points stop and 10 points target for hitting the 61% and 50% retracement and a 15 points for the 38% retracement.

Comments are welcome