In this post, i am going to break down this mark up on an educational basis as i believe it may benefit a lot of people.
To begin with, it it very important that you keep your analysis simple and your charts as clean as possible.
I have marked the points of with the light grey boxes and these are points in the market where price may . In other words where price will either respect or violate. Will either break and trade below or above or will bounce off.
We can see price met out support ( at the bottom) and from this point price started an uptrend. One way you can know this is via the use of . We can see price broke above the descending i have plotted implying a start of a new trend upward.
Once price made a run it met resistance ( found at the top) and price started to retrace. This is where i used the tool. For those that don't know, this tool is widely used by traders to measure retracements ( pullbacks) within the market and the levels on this tool are also areas of . It is a very important tool you must all have in your tool box as contributes to making your strategy objective.
The fibonacci was drawn from point A to point B as you can see my entry was marked at level. We then see price rejected from this level and move be and continue the uptrend.
Hope this helps :) i will create more educational videos covering more topics like stop loss placements, take profit levels, and much more.
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