[Christian Harris]

Here’s a potential Nasdaq-100 trade setup to demonstrate using one of my favourite technical analysis tools, Fibonacci retracement.

Trade Setup

• 1-day timeframe for a swing trade
• Fibonacci retracement level hit 100% (20477.40)
• I’m bullish on the Nasdaq-100, so I entered a long (buy) position
• I set my take profit at a key Fibonacci level (2,1145.40)
• I set my stop loss at a key Fibonacci level (19,396.80)
• I am risking 1,080 points to make 668 points

Advanced Risk Management

I could adjust my stop-loss as the trade moves in my favour.

Alternative Trade Setup

I could enter multiple long positions to target multiple Fibonacci levels, but this would increase my risk. As a conservative trader, I prefer to enter only one position per price level in case my analysis is wrong.

Disclaimer: This example is for informational and educational purposes only and should not be considered financial advice or a recommendation to buy or sell any security. Trading involves significant risk, and past performance does not guarantee future results. Conduct your own research and consult with a financial professional. The information discussed here is personal to the author and may not be suitable for all traders.

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