This is a trader question from the Fibonacci Trading Forum.
What causes you me most difficulty?
Setting the right landmarks on my chart. Example : trading a 60 minute chart on 240 minute trend. First I put SKs and trend lines from Daily and 240 minutes. However, I still have SKs or just Fib levels from my 60 minutes, (a) If I want to go long, I have my 60 min Fibs, SKs (which may coincide with 240min), then the 240 min SKs (resistance) etc…… IF I take each one seriously, I will probably leave the trade. The profit margin may seem small. So, how can rank these landmarks ? or should we just take them as targets ??
It is important to have the correct Fibonacci levels on your chart, as you have. The challenge is to decide what to do about them! Any retracement, support, resistance, can have an effect on the market, so they all should be treated with respect.
In summary, if one of those levels causes an exit trigger, you get out, otherwise you stay with your trade. We should discuss this in more detail with live examples, in our webinars.