Could someone recommend a site where I can learn how to use Fibo levels? I can't seem to grasp it, and really want to learn. Thanks.
I use fib a lot . the critical point is to find which retracement affects the current move, and you may find it by trying different possibilities. Sometimes it will even be on a different timeframes.
A good example is the current GU weekly chart.
if you consider the retracement from the previous bulllish move, you see the pair is now supported by a ,786 fib line. This support looks very strong.
But if on the same time frame, you consider now the retracement of the last bullish move, you see that the pair is rejecting a 23,6 fib line resistance.
If you input those two fib on the same chart ane go to H4 you ll see the ,786 fib suppport gave good buying signals, while the 23,6 resistance capped the move for some times but finally leet it pass through before the pair reversed into it.
Therefore you have even a beginning of a trading plan for gu just by using fib lines : look for long at the ,786 fib line support, be cautious about the 23,6 resistance because it does not look that strong, but I will happily take long too on that one should it be broken up and retested. If the ,786 fib support breaks, consider going short (watch out the 1,52 level).
So you have to look for and find the retracement the pair is actuallly following. There is no automatic way to do it, you have to look at the charts and try different retracements until you find a one that looks accurate enough.
A good example is the current GU weekly chart.
if you consider the retracement from the previous bulllish move, you see the pair is now supported by a ,786 fib line. This support looks very strong.
But if on the same time frame, you consider now the retracement of the last bullish move, you see that the pair is rejecting a 23,6 fib line resistance.
If you input those two fib on the same chart ane go to H4 you ll see the ,786 fib suppport gave good buying signals, while the 23,6 resistance capped the move for some times but finally leet it pass through before the pair reversed into it.
Therefore you have even a beginning of a trading plan for gu just by using fib lines : look for long at the ,786 fib line support, be cautious about the 23,6 resistance because it does not look that strong, but I will happily take long too on that one should it be broken up and retested. If the ,786 fib support breaks, consider going short (watch out the 1,52 level).
So you have to look for and find the retracement the pair is actuallly following. There is no automatic way to do it, you have to look at the charts and try different retracements until you find a one that looks accurate enough.
