How to draw Fibonacci Retracement levels in trading?

[Nancy parez]

How to draw Fibonacci Retracement levels
Drawing Fibonacci retracement levels is a simple three-step process:

In an uptrend:
Step 1 – Identify the direction of the market: uptrend
Step 2 – Attach the Fibonacci retracement tool on the bottom and drag it to the right, all the way to the top
Step 3 – Monitor the three potential support levels: 0.236, 0.382 and 0.618

In a downtrend:

Step 1 – Identify the direction of the market: downtrend

Step 2 – Attach the Fibonacci retracement tool on the top and drag it to the right, all the way to the bottom

Step 3 – Monitor the three potential resistance levels: 0.236, 0.382 and 0.618

How to Use Fibonacci Retracements in Trading

Here are the steps involved in making use of Fibonacci retracements for forex and CFD trading:

1. Find the Fibonacci retracement on your trading platform.

2. Determine the current trend and find the highest and the lowest points. There must be no other tops and bottoms that exceed those you have chosen.

3. Draw a line, so-called baseline, connecting the highest and the lowest points.

4. If you trade in the bullish trend, draw the line from bottom to top. If you consider a bearish trend, the line should go from maximum to minimum. To make it easier, remember that you should draw the line from the left corner to the right corner.

5. As soon as you draw the line, six horizontal Fibonacci levels will appear. These are 0.0%, 23.6%, 38.2%, 50%, 61.8%, 100%. You can always add additional levels if your trading strategy requires it.

6. As these levels are used as support and resistance points, the price is supposed to consolidate near them. In such a situation, the price should either break the Fibo level, it will mean the trend is strong or move to the next level, signaling a continuation of the correction.

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Thanks and regards 

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[Resolve]

I have made use of the Fibonacci levels in doing my trades and i can say for sure that we will need to make use of the correct Fibo levels.

[uncle gober]

the funds and risks that exist must be able to be considered properly, this is done so that traders can be more leverage in getting the security and comfort of trading together with Tickmill.