from the example above, the.8 circle level was a great support for price. As far as technical analysis is concerned, the Fibonacci retracement levels tool (one of the tools used in this strategy) is formed when two extreme points (usually a major peak and trough) on a chart are taken and divided by the vertical distance of the. When entering a sell position near the top of the large move, you can use the. From the chosen point, it extends 1 bar to the right followed by 2 bars, then 3 bars. Fibonacci retracement tool during a downtrend. As you can see from the chart, the. Price must have commenced retracement before you trace the tool so you are sure of the highest point of the chart. Fibonacci numbers directly, traders focused on the, fibonacci ratios.
The.6 level was a decent conservative target. Fibonacci retracement levels were.7955 (23.6.7764 (38.2.7609 (50.0.7454 (61.8 and.7263 (76.4). They should be looked at as areas of interest, or as Cyclopip likes to call them, kill zones! It is important to understand how each indicator used in the strategy works. Now, lets look at what happened after the Swing High occurred. 2 ratio: divide one number by another number in the series found two steps higher. We might find part of that magic and wonder in financial markets driven by human psychology. Since these are time extensions, do not use this trading technique reddit forex faq on charts without a time base.