Fibonacci Based Calculation

Fibonacci patterns must correspond with long-term (50-day or 200-day MA) trend. 

Trading against trend or with flat market will not likely produce successful trades.

LONG TERM:

Set up Fibonacci on 4-hour chart.

Trailing Stop loss: (61.8 to 38.2 price difference) plus (current price to 61.8 percent price difference). Set trailing stop to regular stop for volatile trading during waking hours. Use trailing stop when away in early am or for short term risk aversion.

Entry price: (determined by computer but should be close to current price) at 61.8 percent pullback from trend as possible entry.  If current price is too far from 61.8 price, perhaps best to avoid trade Limit price: determined by average drop and pop price.

(Email john@blackbox.intend.media for more information on this. Average is 15 to 35 pips).

Take profit: 1.618 x (61.8 to 38.2 price difference). Add this to entry price.

If long term trend changes, Fibonacci retracements or extensions will not be valid.

SHORT TERM:

Set 0% at Previous High of 2 days on 5 min chart (eg.38.71)

Set 100% at Current Low (eg. 35.24)

Note 161.8% value (eg 33.10)

Stop Loss = [Current Price (36.59) – 100% price (35.24)] + 161.8% price (33.10) = 34.45

Take Profit = 0% value price (38.71) + [Current Price (36.59) – 100% price (35.24)] = 40.06

Entered value for Trailing Stop Loss = Current Price (35.24) – Stop loss (34.45) = 2.10

Entered value for Take Profit = Take Profit (40.06) – Current Price (36.59) = 3.47

Easy Fibonacci for rapid calculation

SL = 100% price – 161.8% price = 2.14

TP = multiple SL number by 1.618 = 3.46