Fibonacci Retracement - Quick Guide in 5 StepsTrading the Fibonacci Retracement - Quick Guide in 5 Steps.
What is the Fibonacci tool?
The Fib Retracement Tool is a tool used widely across many charts. From crypto to stocks.
It assists in identifying the Golden Pocket, along with any potential Support and Resistance zones based on the sequence in Fibonacci.
Investors & Traders draw it from a previous high/low or low/high.
On a chart, each key level shows where price might pause or reverse during a pull back, before it continues the trend.
In this guide you will learn how to use the Fibonacci tool in 5 steps.
1. Configurations
Open up your Fib Retracement Tool's settings, apply the below configurations.
(You can change the color to your choice)
2. Identify High/Low's
Identify, recent highs and lows of your current chart/pair.
3. Applying Fib Retracement
Select your Fib Retracement tool. Place it on your chart starting from the swing low to the swing high.
4. Once completed
Highlight the Golden Pocket Field in the zone (0.65-0.618)
5. Review Entry
Price will eventually make it's way back down to the Golden Pocket to retest and reverse.
SL Placement would be on a previous low or key level, TP placement would be at a previous high or key level.
Bonus:
See the real time example below:
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