Stop Loss In Fibonacci Retracement Level Tips
This topic is really subjective. It is up to the trader style of trading strategy whether you want to use stop loss or not. It is up to you. As long as you can make money, just fine.
There are trader does not use stop loss such as forex scalper.
But in this fibonacci retracement strategy, stop loss is very important. With stop loss, you can define how much money you want to put into risk.
Therefore, stop loss is important in fibonacci trading.
Where to put the stop loss?
In fibonacci retracement , you will determine the market trending, and then you know the market direction.
The stop loss to put is 10pips from the high or low market structure.Or can also put on 0% fibonacci retracement.
Market Trending is Uptrend.
Market Structure is Higher High, Higher Low and Higher High
Stop Loss is 0% fibonacci retracement.
What if it hit the stop loss?
That does not matter if only you follow your own trading plan.
You need to define your stop loss. How much money you can afford to loose.
It hit your stop loss and continue the movement.
What if you don’t put your stop loss?Your entry will float!
That is the use of stop loss.It prevent your account from floating. Your money management strategy will grow your money if you set your reward greater from the risk.
If you still not understand how to use fibonacci trading, try to have a look at this fibonacci indicator.
It helps you determine your fibonacci entry setup.
Good Luck! Happy Trading!