1. Find a suitable trend / swing
You can basically find trends in every chart. The fibonacci tool achieves the best results with strong trend movements. So look for strong impulses!
2. Detect the start and the end of the trend
The Fibonacci can be used variably. In my experience, the longer swings work better.
3. Drag the fibonacci tool from the start to the end point
Select the Fibonacci tool (shortcut ALT + F). Drag the tool from the start point to the end point. You can change and adapt the tool at any time.
4. Detect the most important levels
0.236 Retracement:
- Suitable for high momentum trades. The trend should show high volume.
0.5 Retracement:
- The most important and effective retracement. It shows the average movement and many traders buy at half the price.
0.618 Retracement:
- Very effective in conjunction with the 0.5 retracement. The zone between the retracements is very often a support.
5. Use the levels to trade pullbacks
The retracements are generally not a 100% probability of a successful trade. The interaction with other indicators and technical aspects is key.
You can basically find trends in every chart. The fibonacci tool achieves the best results with strong trend movements. So look for strong impulses!
2. Detect the start and the end of the trend
The Fibonacci can be used variably. In my experience, the longer swings work better.
3. Drag the fibonacci tool from the start to the end point
Select the Fibonacci tool (shortcut ALT + F). Drag the tool from the start point to the end point. You can change and adapt the tool at any time.
4. Detect the most important levels
0.236 Retracement:
- Suitable for high momentum trades. The trend should show high volume.
0.5 Retracement:
- The most important and effective retracement. It shows the average movement and many traders buy at half the price.
0.618 Retracement:
- Very effective in conjunction with the 0.5 retracement. The zone between the retracements is very often a support.
5. Use the levels to trade pullbacks
The retracements are generally not a 100% probability of a successful trade. The interaction with other indicators and technical aspects is key.
