Best index options to trade dubai
If using a longer time frame, like hourly, 4-hour, daily or weekly chart, then place the stop loss at least several pips below the low (the longer the chart time frame, the more space I give). Profit targets can be established using Fibonacci Extensions or a reward:risk ratio. Apply the Fibonacci extension tool to the impulse wave and the pullback to get an idea of where the price will go on the next impulse wave (see Fibonacci Extension article ).
For example, if you risk is 10 pips, your profit target is 16 or 20 pips respectively.