Hi all -
I've read many posts about fib lines, and I am still missing something. My question this time - when drawing them, how far back in time to you go to find your starting point? For example, say I am looking at a 30m chart - I can see approx. 24 hours of candles on my screen. Now, I see a downtrend, so I connect the highest point (swing high) to the lowest point (swing low).
However, if I zoom out my graph, I see that yesterday's data shows today's downtrend is just a continuation of a larger trend - so yesterday has a higher swing high. Do I use that one? Go back a few days? Or just use what is on my screen? I am pretty confused by that.
Also, how do you use the Fib extension in MT? After drawing retracements, do I connect the swing low to the new (but lower) swing high?
Will I ever understand the almighty Fib?
I've read many posts about fib lines, and I am still missing something. My question this time - when drawing them, how far back in time to you go to find your starting point? For example, say I am looking at a 30m chart - I can see approx. 24 hours of candles on my screen. Now, I see a downtrend, so I connect the highest point (swing high) to the lowest point (swing low).
However, if I zoom out my graph, I see that yesterday's data shows today's downtrend is just a continuation of a larger trend - so yesterday has a higher swing high. Do I use that one? Go back a few days? Or just use what is on my screen? I am pretty confused by that.
Also, how do you use the Fib extension in MT? After drawing retracements, do I connect the swing low to the new (but lower) swing high?
Will I ever understand the almighty Fib?