Fib Retracement From Scratch
Hello, traders!
As you can see, SkyRock traders always use Fib tools for our analysis and predictions. We find Fibonacci tools a great powerful series of instruments that’s necessary to use. Today we’ll speak about one of my favorite TA tools - Fib Retracement.
Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points. Well, it seems to be not very important and attractive how to calculate Fib Retracement Levels. You should just know that they are based on something called the Golden Ratio. It’s believed that all natural laws are based on this ratio. However, the right usage of it is deadly important.
To initialize it, put the first point to the previous lower low and the second to the confirmed higher high during the up-trend and vice versa during the sown-trend.
What can it tell you?
Initially, support and resistance. It could hardly be possible to find the tool better for such purpose. Then, the levels of it is usually reached, thus it may produce some signals. Although it’s very powerful tool, it’s kinda ridiculous idea to use it marginally. Also, the areas of sideways is also defined by it, cause of high probability of consolidation in «Golden Pocket». And at last, it helps ms to define Gartley and Elliott patterns.
Well, guys, as you can see it’s really great and multifunctional instrument that can help every of you to trade and make money trading. Use it in the right way! Have a nice trading day, dear traders!
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
As you can see, SkyRock traders always use Fib tools for our analysis and predictions. We find Fibonacci tools a great powerful series of instruments that’s necessary to use. Today we’ll speak about one of my favorite TA tools - Fib Retracement.
Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points. Well, it seems to be not very important and attractive how to calculate Fib Retracement Levels. You should just know that they are based on something called the Golden Ratio. It’s believed that all natural laws are based on this ratio. However, the right usage of it is deadly important.
To initialize it, put the first point to the previous lower low and the second to the confirmed higher high during the up-trend and vice versa during the sown-trend.
What can it tell you?
Initially, support and resistance. It could hardly be possible to find the tool better for such purpose. Then, the levels of it is usually reached, thus it may produce some signals. Although it’s very powerful tool, it’s kinda ridiculous idea to use it marginally. Also, the areas of sideways is also defined by it, cause of high probability of consolidation in «Golden Pocket». And at last, it helps ms to define Gartley and Elliott patterns.
Well, guys, as you can see it’s really great and multifunctional instrument that can help every of you to trade and make money trading. Use it in the right way! Have a nice trading day, dear traders!
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
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