Then we add fibs to suit the move on the 1H TF (15M TF shown here though)
As we see how price is playing out, we pull our target fibs on the recent swing low to swing high, and see that the 0.705 level of the target fibs lines up nicely with the 0.236 1H HTF fibs
Dropping in at the 5M TF, we can pull our target fibs again to see where we'd enter a move (at the confluence levels we explored above)
If we then pull some target fibs in the opposite direction, this can give us some areas of possible trouble, or target tak profit areas
Also note that another factor of confluence was that price was trading at the Value Area Low of this region, which works well as a region to long.
Going back to our entry and long tool, you can see that our areas of trouble shown previously now line up with the -0.66 of our target fibs.
And? Well, lo and behold, we get an impluse move up and our targets are hit.
The same principles of the 5M chart can be used on a HTF chart, across any market.
Hopefully you can find some value in what I've shared here, and feel free to share.
Cheers,
Mindset ⚖️
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A little snippet into a current trade of mine right now - $DOT
A mini day trade thread:
- First open the chart and assess the Price Action
- What we see is some previous market structure broken per the rectangle
- We've also now had 4 taps of support here
Now we set up our HTF fibs as shown, and then also check the volume
- Note that there was a large amount of volume to support the larger move, with much lower volume now where price is trading
- We've hit the 0.618 fib of a higher time frame &clearly seen some rejection
- Based on the move, we should now build a narrative
- History has doesn't repeat itself, but it does rhyme
We can call this move a bear flag at the moment, and the key thing is to recognize how price reacts as the 0.382 fib level of a bear flag
- Note the ellipses shown here for reference
Now to check out some Volume Profile:
We're at the VaH of the VPVR - in a parallel channel we usually short at the tops of these, so there would have been a lot of selling interest here, coupled with the 0.618 hit of the overall HTF