How to get trades with high risk-reward and reduce stop losses using Orderblocks and the Fibonacci tool.
A thread ๐งต
A thread ๐งต
The sole aim of this thread is to teach you how to reduce your stop loss and get high RRR. If you're the type that trades on higher timeframes using Orderblocks, your stop losses will no doubt be large. But here's how to get good stop losses using the Fibonacci tool..
1. Get your OB. Recall, a good OB is usually seated on a support/resistance level. Learn about Orderblocks here:
2. Take the Fibonacci tool and place it from the open of the orderblock to its close or close to the open. The 50% or 0.5 level will be your entry. So rather than entering on a high or low, your entry is now at 50% of the actual body.
Now, let's take a look at this trade on US30. I used my TAIE strategy to get this orderblock.
Now, notice that the RRR of this trade was 1:3.48 and the SL was 159 points. RRR seems good but that SL is huge. This entry was at 29350.00
Now, observe how I placed the Fibonacci tool on the candle; from the close to the open. As I said, the 50% level is your entry. Now, my entry is now at 29421.00
Now, take a look at the RRR and SL of this trade.
RRR = 1:7.1
SL = 88 Points.
Now, this is how you reduce your SL and get high RRR trades when using your orderblocks.
RRR = 1:7.1
SL = 88 Points.
Now, this is how you reduce your SL and get high RRR trades when using your orderblocks.
I believe you learnt something today. Hit the "FOLLOW" button for more educational contents!
Come learn, interact and trade with other traders on my Discord server:
discord.gg
Come learn, interact and trade with other traders on my Discord server:
discord.gg
For those who are interested in my TAIE strategy, you can get it here ๐
awilliams.selar.co
awilliams.selar.co
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