Refer 1 Minute chart for Better understanding.
Market was very Bullish , after the price took Resistance, it retraced back to 61% FIB level.
Accumulated, for a bit and Broke out.(13:00 Hrs Candle).
We won't take a position here, as we want a retest or a small consolidation breakout.(In this case it was a consolidation Breakout)
It gives us a better confirmation of where the price is heading.
Without a retest we get trapped most of the times.
At 14:15 Hrs , the price broke consolidation with an impulse move.(14:28 Hrs )
Here we can take position with StopLoss being placed @ the low of breakout candle.
Target was set near Day's high.
Market was very Bullish , after the price took Resistance, it retraced back to 61% FIB level.
Accumulated, for a bit and Broke out.(13:00 Hrs Candle).
We won't take a position here, as we want a retest or a small consolidation breakout.(In this case it was a consolidation Breakout)
It gives us a better confirmation of where the price is heading.
Without a retest we get trapped most of the times.
At 14:15 Hrs , the price broke consolidation with an impulse move.(14:28 Hrs )
Here we can take position with StopLoss being placed @ the low of breakout candle.
Target was set near Day's high.