IKNA - Hoping to catch a waveThe longer term downtrend has been broken, and price went through some sideways accumulation.
Now, I'm waiting for price to pull back to at least the 0.5 fib (done) but no further than the 0.236 fib. If price reverses and heads back up, without going below the 0.236 fib, I'll start buying in when price reaches the the 0.5 fib.
Target = 1.618 fib level for ~57% profit. You can also take some profit once price reaches the 1.0 fib.
Set stop loss between the 0.236 fib and 0.382 fib, depending on your risk tolerance. Move the stop loss up (or use a trailing stop) as the impulse wave develops upward (if it actually does).
Risk to reward ratio on this is between 6:1 and 8:1, depending on where you set your first stop loss.
This is a new trade setup I've been playing with, and I'm following the procedure/rules above strictly. If price falls below the 0.236 fib during this initial pullback, the trade setup is invalidated, and I'll look elsewhere for setups like this. There are loads out there. This looks like a promising price-action based approach.
