This is the trade setup I was talking about in the post titled "training Over Trading". Here is what I was looking at. At the top of the screen we have a structure high which proceeded to rollover. I took a Fibonacci retracement of this move and saw that the 0.618 came in at a nice looking structure area. At this point I told myself that there was a good chance that the market would be sucked into this point and then either reverse back down on or continue to go up. Because I would have been presented with a great risk/reward ratio it would have been a worthy trade to risk 1 to gain 2. If I was trading live I would have went down to a smaller time frame to get the best entry possible and Target 1 would have been where price action is at in the picture above. Target 2 would then be at the completion of the potential ABCD pattern. If you read my post, then you'll know that I didn't trade this setup live, but I did learn a lot from it.
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