Hi guys, I want to introduce a simple system using the fibonacchi fan tool.
You can use this with any timeframe I prefer 4 hours.
Find 2 points of support/resistance.
Lets use bullish example. This would mean that we have to find 2 resistance points.
Place first point of the fibo fan on the first resistance and the second point of the fibo fan on the second resistance point.
Place the fibo fan so that the lowest line of the fan becomes the downward trendline on these 2 resistance points(lower highs).
The lowest line is also 38.2 fib line.
Once a candle closes above this low line of the fibo fann go long. Your target is 68.2 fib line which is the highest fib fann line.
Sl should at least equal tp.
You can use different trade management at this point.
One alternative is to take 2 trades, first one tp at 68.2 second one bring to breakeven and trail.
You can use this with any timeframe I prefer 4 hours.
Find 2 points of support/resistance.
Lets use bullish example. This would mean that we have to find 2 resistance points.
Place first point of the fibo fan on the first resistance and the second point of the fibo fan on the second resistance point.
Place the fibo fan so that the lowest line of the fan becomes the downward trendline on these 2 resistance points(lower highs).
The lowest line is also 38.2 fib line.
Once a candle closes above this low line of the fibo fann go long. Your target is 68.2 fib line which is the highest fib fann line.
Sl should at least equal tp.
You can use different trade management at this point.
One alternative is to take 2 trades, first one tp at 68.2 second one bring to breakeven and trail.
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