How to Use Fibonacci Retracement ?

hello traders , today i'll talk abouut my favourite tools

the Fibonacci retracement tool is extremely useful and it help us to find the strong resistance and support area ( 0.618) .

How to use it :

Drawing Fibonacci retracement levels is a simple three-step process :

In an uptrend:
Step 1 – Identify the direction of the market: uptrend
Step 2 – Attach the Fibonacci retracement tool on the bottom and drag it to the right, all the way to the top
Step 3 – Monitor the three potential support levels: 0.236, 0.382 and 0.618

In a downtrend:
Step 1 - Identify the direction of the market: downtrend
Step 2 -Attach the Fibonacci retracement tool on the top and drag it to the right, all the way to the bottom
Step 3 Monitor the three potential resistance levels: 0.236, 0.382 and 0.618

In the next post, I will explain more about The golden ratio and how to use it in entering and exit .

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