Unde Eastforexcashbackstanding where to set your stop cashbackforexbtc cashback forex just as important as knowing where to enter or take profits back. If you are going to enter at the 38.2% Fibonacci forexcashbackcalculator, you better set your stop below the 50.0% Fibonacci level if you think the 50.0% level will hold, then you better set your stop below the 61.8% level. Lets take a look at the 4-hour chart of EUR/USD, a graph that we showed you in the last lesson about Fibonacci retracement levels, the aggressive approach: placing a stop loss just below the Fibonacci level If you have placed a stop loss at the 50.0% level, you have probably placed your stop order just below the 61.8% Fibonacci level. The problem with this method is that it is largely dependent on you choosing the perfect entry point just below the next Fibonacci level to place your stop loss, provided you are very confident that the price will hold at support or resistance and, as we pointed out earlier As we pointed out earlier, the use of charting tools is not an exact science and the market can have a major breakout that knocks out your stop loss and eventually moves in the direction you judge. If you are using the Fibonacci tool to set a stop loss level in an intraday short term trade, this is probably the best way to do it conservatively: set the stop loss level at the point where the exchange rate crosses the high or low of the band&nb East forex cashback; (Forex Technical Analysis    www.waihuibang.com/fxschool/technical/) Now, if you are going to take a more secure strategy, then set the stop loss level This method will give you more breathing room and provide a greater chance of letting the market move in the direction of your choice If the market price exceeds the high or low of the band, this may indicate a reversal in the price of the currency which means that your trading strategy is no longer working Set a wider stop loss for long term trading is likely to be best Of course, if you set a wider stop loss, you should also remember to resize your position appropriately. If you intend to trade with the same size position, but with a wider stop loss, you will probably suffer greater losses than before, especially if you entered at one of the previous Fibonacci levels, which will also result in an unreasonable return/risk ratio. This will also result in an unreasonable return/risk ratio, because the wide stop you set is not proportional to the return you are likely to achieve. The truth is, just like using the Fibonacci retracement tool in combination with support and resistance, trend lines and candlesticks to find better entry points, the best approach is to combine your knowledge of analytical tools and current market conditions to choose a good stop loss level You should not use the Fibonacci levels as support and resistance alone, use these support or resistance levels as the basis for your stop loss setting Remember, stop loss is not a definite thing, but if you can combine multiple analytical tools to figure out an approximate stop loss level, it will help you find a better exit level and will give you more breathing room to trade together, and you will also get a better reward/risk trading ratio.