NZDUSD 60 min reversal to trendline

NZDUSD Daily Fib update 9feb09  –  See how strong candle hit Fib level and bounced.

NZDUSD 60M fib 9feb09  –  This is a small reversal to the short term trendline on the 60M that I have entered, but relatively small stop.  Risk is the pair will want to rise to the 800 before the 800 falls to price.  I may have to retry if I get stopped out.  What I find so interesting is a reconfirmation of the Fibonacci levels in real world trading.  Although the real methodology is a trade off of what I think is an overdone rally with a modest 100 pip initial target the Fibonacci overlay is spot on with the price movement.  Even the  projections below 1.0 are right on the previous low.  It is also interesting that the .380 fib level is right on the cross of the TL as the trade opened.

 On Fib’s, they are not trade ideas all by themselves, but they are becoming useful in my trading as confirmation of where price should/could go and where it should not go in a certain timeframe.  These levels also highly correlate to the work I did on the Daily Fib’s last week on this pair in a previous post.

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