How to use fibonacci retrace?
Just drag from one extremist (peak, bottom) of the wave to another extremist of the wave, that's it.
Quote from: Emloala on June 01, 2020, 12:17:36 PM
Just drag from one extremist (peak, bottom) of the wave to another extremist of the wave, that's it.
Then what's next.
How to use Fibonacci Retracement
1. Visually look at a chart and see whether it is trending. A trending market is one which is moving in an upward or downward direction. If the price is ranging, it means that it is almost impossible to apply the Fibonacci tool.
2. Identify areas where it is making swing highs and swing lows. After this, you need to drag the Fibonacci Retracement tool. This will result to a number of lines, which are all indicated by percentages (levels).
3. After joining these lines, each of the Retracement line will become a point to watch in your trading.
For example the GBP/USD pair is in a downtrend and the price has moved to the 61.8% Fibonacci Retracement level. The implication is that the next support level will be along the 50% Fibonacci Retracement level of 1.2900.
At this level, the pair will likely find resistance as traders decide on what next. It could also come back to the 61.8% level and then continue moving lower.
https://www.daytradetheworld.com/trading-blog/how-to-use-the-fibonacci-retracement-tool-in-trading/
Really enjoyed this post.Thanks Again. Great.