moonchild
VIP Contributor
Fibonacci is an Italian that created a mathematical formula that was very famous to the point of being used in Forex.
Fibonacci Retracement, is a tool that comes with the meta trader app and it is used to measure levels like support and resistance in charts.
To use Fibonacci Retracement is very easy, all you have to do is to go your tool menu and scroll down, you'll find the Fibonacci tool and click on it, go to your chart and click and hold, then drag, you'll see some certain lines and levels, demarcated with numbers and different color for each line.
The line are very important to determine the strength of a level, and that's what you'll learn in this post.
You should place the the tool at the beginning of a move and drop the end at the end of a move, then focus on the Retracement
If the Retracement, stops at 32% that means the move is strong, and you can enter the trade and then put your stop loss at the end of the line and then if the retracement went to 61.8% then it is called the sweet spot, it's a good spot to enter too because the impulsive move will be very strong.
Fibonacci Retracement, is a tool that comes with the meta trader app and it is used to measure levels like support and resistance in charts.
To use Fibonacci Retracement is very easy, all you have to do is to go your tool menu and scroll down, you'll find the Fibonacci tool and click on it, go to your chart and click and hold, then drag, you'll see some certain lines and levels, demarcated with numbers and different color for each line.
The line are very important to determine the strength of a level, and that's what you'll learn in this post.
You should place the the tool at the beginning of a move and drop the end at the end of a move, then focus on the Retracement
If the Retracement, stops at 32% that means the move is strong, and you can enter the trade and then put your stop loss at the end of the line and then if the retracement went to 61.8% then it is called the sweet spot, it's a good spot to enter too because the impulsive move will be very strong.