SPY Buy At 100% Fibonacci Retracement Level
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Topic
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Here’s a potential SPY trade setup to demonstrate using one of my favourite technical analysis tools, Fibonacci retracement.
Trade Setup
- 1-day timeframe for a swing trade
- Price hit 1 (100%) Fibonacci retracement level
- I’m bullish on SPY, so I entered a long (buy) position
- I set my take profit at 0.5 Fibonacci level
- I set my stop loss at 1.618 Fibonacci level
- I am risking 4.07% to make 3.29%
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.
