Question -

How to get the best out of fibonacci strategy?

8 Views
5 Answers
William Cummings
Answered 3 years, 1 month ago
<p><br>Believe it or not I just made up the name of this strategy but the strategy itself is old, very old. The Long Bar Method targets specific days and is not for use on a day to day basis, unless of course the asset you are trading is volatile and makes a lot of wide swings. For this method to work you need to be patient and wait for a day when news, a technical break out or some other event causes the market to make a much larger than normal daily movement, say in the range of at least …</p>
7 Views
Richard Cross
Answered 3 years, 1 month ago
<p><br>For this method I suggest that you use a chart with 30 or 60 minute candle sticks. This is a good time frame for watching the day to day swings in the market and for using Fibonacci Retracement. This method is also more useful for the average day trader as it can be used any day, not just after a strong market movement. To apply it, pull up a chart of 30 or 60 minute prices and then apply a Fibonacci to the most recent trough and peak. It does not matter if it is drawn from a peak to …</p>
6 Views
Harvey Brown
Answered 3 years, 1 month ago
<p id="isPasted">First, you want to identify a security in a strong trend.</p><p>A strong trend can be defined as a stock with successive highs with pullbacks of less than 50%.</p><p>If you are day trading, you will want to identify this setup on a 5-minute chart 20 to 30 minutes after the market opens.</p><p>After identifying a strong uptrend, observe how the stock behaves around the 38.2% and 50% retracement levels from the morning highs by looking at the time and sales and Level 2.</p><p>Once you see the trading activity slowing down or turning, enter the trade.</p><p>You can use …</p>
5 Views
Albert Buchholtz
Answered 3 years, 1 month ago
<p><br>Fibonacci retracement levels are depicted by taking high and low points on a chart and marking the key Fibonacci ratios of 23.6%, 38.2%, and 61.8% horizontally to produce a grid. These horizontal lines are used to identify possible price reversal points. The 50% retracement level is normally included in the grid of Fibonacci levels that can be drawn using charting software. While the 50% retracement level is not based on a Fibonacci number, it is widely viewed as an important potential reversal level, notably recognized in Dow Theory and also in the work of W.D. Gann.</p>
3 Views
Christopher Campbell
Answered 3 years, 1 month ago
<p><br>Fibonacci retracement levels often indicate reversal points with uncanny accuracy. However, they are harder to trade than they look in retrospect. These levels are best used as a tool within a broader strategy. Ideally, this strategy is one that looks for the confluence of several indicators to identify potential reversal areas offering low-risk, high-potential-reward trade entries.</p>
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