Fibonacci on BISTI have detected that BIST price has been moving according to the fibonacci retracement for several months. Let me explain the whole strategy of the fibonacci retracement and how the price adapts, in order.
BIST index is in a continuous downtrend from 9 March to 3 April. At the end of this downtrend (4712), I drew the Fibonacci retracement, which I received confirmation of return, and I saw that the 0.618 level was 5185 TL. Therefore, a purchase I will make at the bottom and then a sale at 0.618 brought me a profit of 10%.
When the price hit the 0.618 level, I got confirmation of a reversal and removed the old fibonacci and drew a fibonacci from the low on April 3 to the high on April 13. (I wouldn't have done this if I hadn't received the return confirmation.) The 1.618 level (4393) of the fibonacci I just drew became my new target. A short I opened at 5187 brought me a profit of even over 15% when I reached 1.618.
Then I saw a double bottom formation at this level and it was a confirmation of a return for me. Therefore, I drew a fibonacci from the high price on April 13 to the low price on May 5. The 0.618 level (4860) of this fibonacci is also the target for me. When I reach the target, I think I will make a profit of around 10%.
As I see the possibility of a return from the 4860 level, I drew a (not certain) fibonacci price of 0.618 from the bottom price on May 5th. This gives me the next bottom price of 4119 TL, ie 1.618 fibonacci level.
The Fibonacci strategy is generally like this. As you can see, the strategy should be used in conjunction with reversal or breakout confirmations. These confirmations can be taken with candles or formations.
