How to Use Fibonacci Retracement to Enter a Trade
One of the powerful tools to really is Fibonacci when trading forex market. Some retail traders have neglected this tool and unable to find their feet in the market place. Hedge funds, institutional traders do not joke with Fibonacci Retracement which is the significant area of turns or reversal in the market scene. Here are some studies i was able to gather from some professional traders across the board. The first thing you should know about the Fibonacci tool is that it works best when the forex market is trending. The idea is to go long (or buy) on a retracement at a Fibonacci support level when the market is trending up, and to go short (or sell) on a retracement at a Fibonacci resistance level when the market is trending down. Fibonacci retracement levels are considered a predictive technical indicator since they attempt to identify where price may be in the future.