hello traders , today i'll talk abouut my favourite tools
the Fibonacci retracement tool is extremely useful and it help us to find the strong resistance and support area ( 0.618) .
How to use it :
Drawing Fibonacci retracement levels is a simple three-step process :
In an uptrend: Step 1 – Identify the direction of the market: uptrend Step 2 – Attach the Fibonacci retracement tool on the bottom and drag it to the right, all the way to the top Step 3 – Monitor the three potential support levels: 0.236, 0.382 and 0.618
In a downtrend: Step 1 - Identify the direction of the market: downtrend Step 2 -Attach the Fibonacci retracement tool on the top and drag it to the right, all the way to the bottom Step 3 Monitor the three potential resistance levels: 0.236, 0.382 and 0.618
In the next post, I will explain more about The golden ratio and how to use it in entering and exit .
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