I know there are tons of information out there about the tool Fibonacci levels on any charting package of trading systems.
Also, I am quite sure you can perform a very well analysis using it to find key levels or confluence areas and so on.
But, I want to show you a simple way to approach the market using a sequence of combinations called internal points or levels.
This internal levels was developed by a Russian trader called Viktor.
Also, he has released a book about it, but I am not going to tell you about this book because is not an advertisement of him or his book.
The main point of this levels are four, called internal point 1, 2,3 and 4.
As average this strategy aims for a risk to reward ratio of 2:1, so is conservative approach.
The basic to start my explication will need to set this:
- Check any pair on any time frame, I will use H1
- Plot a line or candle bar, for me I will user the common bar.
- Identify the main trend, the basic by visual recognition.
- Locate the recent swing high and swing low.