The last competed 4hr bar formed on last weeks low. I've been looking at using the previous weeks highs/lows as secondary ideal bar entry signals. So using that information I can place a pending long entry at the high of hat complete bar. No short trades as ATR rule has been exhausted down for me.
So pending long trade. Potential targets?
Option 1) I've taken fibs from the high of the weeks move down to see where 50% retrace would get me in relation to targets. Seeing as my swing target for EJ is 50 points, a first target would see me to 124.80 which would be under the 38% fib, while the 2nd target of 125.30 would still be under the 50% fib, but would mean price going through the 125 level, which based off my research from last week, is a fairly strong area in terms of price action for support and resistance.
Option 2) Take the fibs from the start of the current move down. Now this is interesting. The 50% fib lines up nearly exactly here to my first target, while second target takes me past the 61% fib.
So I've got two pretty strong options in terms of price action that I need to decide on. I think the sensible thing to do would be to take off 2/3rds at my first target, then see how price moves as it reaches 125.00, and then the second target area of 125.30.
That's IF the trade triggers long.