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Please help with a simple Fibonacci question

iecus
Nov 30 2016 at 08:04
1 posts
Hello,

Newbie to forex and I started learning about Fibonacci, because I know so many use them differently I try to read multiple books or watch multi videos to find those using it the same for confirmation that I understand how to use it. I see too many doing the Fibonacci retracement and the expansion differently as in where they start to plot the line.

I'm hoping by the pictures and the notes I left them in can help you to help me understand which is the right way to draw the Fibonacci expansion.

Thank you

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kieran (snapdragon1970)
Nov 30 2016 at 12:52
1945 posts
C is the way I would have used it, although there are other factors to consider those peaks are suggesting a down trend plus the lower low, a lower high wouldn't put me off but a lower low would.

"They mistook leverage with genius".
xgavinc
Nov 30 2016 at 14:59
235 posts
I agree with kieran. But Fibonacci should not be used as the only indicator (it's not meant to be used alone - a strength indicator can be used to determine if it will break support and resistance levels for example). Always go with last highest high and last lowest low. It should also only be used on timeframes 4H and above (your 1D is good).

It may actually be due for a move up at 1.04500, strong move through that may indicate further downward trend.

For every loss there should be at least an equal and opposite profit.
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