Seputar forex fibonacci retracement

The first thing you should know about the Fibonacci tool is that it works best when the forex market is trending. Fibonacci resistance level when the market is trending down. In order to find these Fibonacci retracement levels, you seputar forex fibonacci retracement to find the recent significant Swing Highs and Swings Lows.

Then, for downtrends, click on the Swing High and drag the cursor to the most recent Swing Low. Click on the Swing Low and drag the cursor to the most recent Swing High. Now, let’s take a look at some examples on how to apply Fibonacci retracements levels to the currency markets. Here we plotted the Fibonacci retracement levels by clicking on the Swing Low at . 6955 on April 20 and dragging the cursor to the Swing High at . The software magically shows you the retracement levels. As you can see from the chart, the Fibonacci retracement levels were .

USD retraces from the recent high, it will find support at one of those Fibonacci retracement levels because traders will be placing buy orders at these levels as price pulls back. Now, let’s look at what happened after the Swing High occurred. Price pulled back right through the 23. Later on, around July 14, the market resumed its upward move and eventually broke through the swing high. Fibonacci level would have been a profitable long-term trade!

Downtrend Now, let’s see how we would use the Fibonacci retracement tool during a downtrend. As you can see, we found our Swing High at 1. 4195 on January 25 and our Swing Low at 1. 3854 a few days later on February 1. The expectation for a downtrend is that if price retraces from this low, it could possibly encounter resistance at one of the Fibonacci levels because traders who want to play the downtrend at better prices may be ready with sell orders there.

Let’s take a look at what happened next. Yowza, isn’t that a thing of beauty? The market did try to rally, stalled below the 38. If you had some orders either at the 38. In these two examples, we see that price found some temporary forex support or resistance at Fibonacci retracement levels.