This is a great example of a normal trending market. The market first breaks out and its a failed breakout, falling back down to a low below the breakout level. Because the market retraces back up to the .38 Fibonacci Retracement level we know the market is behaving "orderly" and is not "super weak".

Because of this we look to buy the First Fibonacci Target Level of 1.382. So we buy at 1.3114 and place our stop 5 to 10 pips under the second Fib Profit target. It doesn't show on this cart but assume a 15 pip stop. In this example the market stops and immediately reverses at this key support area. This happens over and over because this is where the world's biggest traders heavily buy and sell! The market rallies Straight Up 35 pips!



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