May 6th Breakout from European Low
Point B price of 1.2654 was established at the end of the European session and was session low, which made it a clean opportunity.
It retraced to the 78.6% fib. Additionally, we have the Ichimoku cloud edge as resistance, was well as a previous S/R of 1.2736 (red horizontal line).
Entry = 1.2642
This was the second candle (18:10) after break candle closed on 5-min chart.
Check 1-min chart for pivot.
1.2671 + 4 pips = 1.2675 = 33 pip risk
That's the best we can do as the market was moving good.
FE 100 = 1.2595 + 4 pips = 1.2599 =+43 pip reward
Risk/Reward = 33/43
As most of you know by now, the stock market took a big dip around 18:40 GMT. The EUR/USD did hit the FE 161.8 exactly.
Don't chase the market when this happens as a big spike back can hurt you. It can drag your stop loss and you will still be responsible.
The fibs, when properly drawn, will provide an exactness to your trading.