Friends, today I will talk about a trading strategy based on Fibonacci retracement levels.
First, we need to establish a premise, using the significant low point of around 92,289 and the recent high point of about 104,088 as a range for Fibonacci retracement calculation. Among them, the 0.5 retracement level is approximately at 98,200, and the 0.618 retracement level is around 96,800. The current price is near 99,200, higher than the 0.5 retracement level. Generally speaking, if the market can retrace to the 0.5 retracement level, that is a very good entry opportunity.
My strategy recommendation is to set a buy limit order with a light position at the 0.5 retracement level, with the order price set around 98,200. The stop-loss level should be placed below the 0.618 retracement level, which is to ensure timely stop-loss when the price breaks below key technical support. I recommend setting it at 96,500, slightly lower than the 0.618 retracement level, to leave some buffer space. The take-profit level looks towards the previous high point near 104,000, as that is the previous high point and a very intuitive point for profit-taking.
Let's calculate the risk-reward ratio: entry price 98,200, stop-loss price 96,500, the risk is 1,700; take-profit price 104,000, potential profit is 5,800. Calculating this way, the risk-reward ratio is approximately 3.4 to 1.
First, we need to establish a premise, using the significant low point of around 92,289 and the recent high point of about 104,088 as a range for Fibonacci retracement calculation. Among them, the 0.5 retracement level is approximately at 98,200, and the 0.618 retracement level is around 96,800. The current price is near 99,200, higher than the 0.5 retracement level. Generally speaking, if the market can retrace to the 0.5 retracement level, that is a very good entry opportunity.
My strategy recommendation is to set a buy limit order with a light position at the 0.5 retracement level, with the order price set around 98,200. The stop-loss level should be placed below the 0.618 retracement level, which is to ensure timely stop-loss when the price breaks below key technical support. I recommend setting it at 96,500, slightly lower than the 0.618 retracement level, to leave some buffer space. The take-profit level looks towards the previous high point near 104,000, as that is the previous high point and a very intuitive point for profit-taking.
Let's calculate the risk-reward ratio: entry price 98,200, stop-loss price 96,500, the risk is 1,700; take-profit price 104,000, potential profit is 5,800. Calculating this way, the risk-reward ratio is approximately 3.4 to 1.