DislikedAlot of it depends on which timeframe you want to trade from, anything less than the 1 hour is useless to a new trader trying to learn fibonacci. I would suggest trying this template with a fib on it already set to the settings I use as a swing fib to measure each waveform with.
The tempate is for GBP so it wont work correctly on any other pair (hehe mentioned that this time)
But what I want you to do with it is mark highs and lows with 2 horizontal lines, the move this fib to those 2 points.
There are 2 ways to trade from that
1. Wait for the High or low to be broken and target T1 for a quick in and out type trade.
2. Trade from the fib levels (38.2/50/61.8) i have them renamed (long/pivot/short) so there is no need to figure out which way to draw them (top to bottom or bottom to top)...its always top to bottom this way. All other fib levels have been removed since they are useless. To trade this way you wait for price to enter into these levels and trade the break or a candle opening outside of them and target the same T1 as an exit.
It doesnt necessarily have to be the high or low of each day you can do this from any point that you can pull a fib from a high to a low on.
practice doing this from any point in history on the chart of GBPIgnored
Thanks for the last post. I also have been practicing for a while and cant seem to be consistent enough for my comfort level.
My question is in regards to the chart you posted. Since price has hit the TP2/ 162 level would we now move the FIB or( FIBO our dog) to the new low at a little below the 1.9563 ish level? Since the "cycle" has completed and we are seeing price moving back up?
Also my biggest question is in regards to the top level of the fib would we leave the high fib point at the Swing high of 1.9827 where it is now or would we make the new high fib point (Swing High) at the 1.9785 ish level where we have the new swing?
My thoughts would be to move it to the 1.9827 level as that is the closest new high to price.
Anyone who can help me clear this up or confirm that my thoughts are correct would be greatly appreciated.