Let’s finish up our discussion on using Fibonacci to place stop losses so you lose less money.
The truth is, just like in combining the Fibonacci retracement tool with support and resistance, trend lines, and candlesticks to find a better entry.
It would be best to use your knowledge of these tools to analyze the current environment to help you pick a good stop loss point.
As much as possible, you shouldn’t rely solely on Fibonacci levels as support and resistance points as the basis for stop loss placement.
Remember, stop loss placement isn’t a sure thing.
But if you can tilt the odds in your favor by combining multiple tools.
It could help give you a better exit point, and more room for your trade to breathe.
And possibly a better reward-to-risk ratio trade.
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