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Basic trend of the market, or the last trend in the chart?
Member Since Jun 03, 2016
1 posts
Feb 13, 2017 at 11:13
Member Since Jan 30, 2017
12 posts
Basically, Fibonacci retracement tool is the trend line analysis. It is the best toll used when market is trending, so this makes a lot of sense. Whenever the pair is in downtrend or uptrend, the traders use Fibonacci retracement as a way to get the trend. It helps to locate the levels where Fib levels line up right smack/break the trend. It also helps in small term trend line which occurred in past couple of days. Fibonacci retracement levels help the price which bounced before heading back up. If you have set some orders at that specific level, you will have a right entry.
Feb 14, 2017 at 09:56
Member Since Feb 12, 2016
522 posts
Hello,
Fibo levels should be applied in general trend. If you monitor for example daily chart, the levels should be applied from the bottom to high in uptrend (in downtrend should be in opposite) in order to find the percentage retreatment of the general moving.
The levels will show you general supports and resistance.
Some traders added few Fibo's on different time frames in order to get better picture - but this is too individually and depending form the trading strategy selected :)
Fibo levels should be applied in general trend. If you monitor for example daily chart, the levels should be applied from the bottom to high in uptrend (in downtrend should be in opposite) in order to find the percentage retreatment of the general moving.
The levels will show you general supports and resistance.
Some traders added few Fibo's on different time frames in order to get better picture - but this is too individually and depending form the trading strategy selected :)
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