How to Use Fib Retracement:
For a downtrend, select a significant swing high and drag to a later significant swing low
For a uptrend, select a significant swing low and drag to a later significant swing high
Fib Retracement levels can be used to identify potential targets after a breakout to the upside or downside.
In this example, I used 2, the one the left beginning in around Jan (larger trend) and the one the right beginning around mid Aug (smaller trend). Once we have a confirmed breakout like here with LTC, we can use these levels to determine potential targets to take profits. In this case, I gave an example Long trade where I expect to TP around 40% of my position around $80 and let the rest ride until it either reaches another Fib level or until I expect a reversal.
For a downtrend, select a significant swing high and drag to a later significant swing low
For a uptrend, select a significant swing low and drag to a later significant swing high
Fib Retracement levels can be used to identify potential targets after a breakout to the upside or downside.
In this example, I used 2, the one the left beginning in around Jan (larger trend) and the one the right beginning around mid Aug (smaller trend). Once we have a confirmed breakout like here with LTC, we can use these levels to determine potential targets to take profits. In this case, I gave an example Long trade where I expect to TP around 40% of my position around $80 and let the rest ride until it either reaches another Fib level or until I expect a reversal.