DislikedThis Fib confirms entry and the trend. We fib the high to the last low, which in this case happens to be the low of the day, and wait for a candle close below the 50% level. Once there is a CANDLE CLOSE below this level, a resistance level will be created here. Wait for a retrace to this level and enter on the retrace, placing stop above the 61.8 or 80.9 and target the -34% level then -55% first.
FIB A - Red Fib
FIB B - Green Fib
i am very sorry to ask this question..i am relative new to fib but i hope someone can help me with it..
1)how do you constitutes a bounce or test of the fib line??
lets say price go past the long fib line and later close below it..this is a bounce or test of the long fib line am i right??
Only when price close above it then it's considered a break of the long fib line am right??
2)What about if price did not go past any fib line? As in it jus move up and down without even touching any fib line? i jus don care about this candle and that is not a bounce or test am i right?
3)one last question..EG..wait for candle to close below the 50% fib and wait for a retrace to this level and enter on the RETRACE..in this case what does retrace means?does it mean that the candle after the close candle(mention above) needs to move past the 50% fib line and come back or jus need to move above the close of the previous candle and come back before i enter on the price level of the close candle(mention above) ? WHY CANT I ENTER ON THE CLOSE OF THE CANDLE AND NEED TO WAIT FOR PRICE TO RETRACE BEFORE ENTERING??
Sorry but i am really confused and hope someone can help me with this explanation. If possible teach me through a chart..
Your help is greatly appreciated =)