A Forex trader must be understand , open trading position with frustration is not a right strategy. There is a way a Forex trader can entry trading position this currency pair. You can open sell position the currency pair back in the trend direction after market price retrace at a Fibonacci level. The point is we can waiting for the retracement to occur before selling the currency pair.
Should the Foreign exchange currency reverse and touch at a Fibonacci level , for "prove" that the Forex currency pair is testing at a Fibonacci level a Forex trader would look for long tail or wicks above the candlestick bodies along the Fibonacci level. Evening star candlestick pattern, Spinning tops or Doji candlestick patterns could be extra verification that the reversal is potentially coming to an end.
Alternative entry system would be waiting for the currency pair to trade or move in a range, and take a sell position should the currency pair trade under its previous low. when Foreign exchange price action can trade below the previous low , which in this example happens to be an all time historic low , chart presents that the sellers are really back in control of this Forex currency pair. If a Forex currency pair is trending strongly to the upside, our trading system simply would be reversed.
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