Hi,
I was wondering when should I change my Fibonacci levels so that they are up to date with the market? Does it correlate with the time period that I am looking at on my chart?
this is up to the trader really.
u can add more fibs to a chart with every swing high low… but then things can get messy.
I don’t really use fibs, but if I did, I wouldn’t use more than 2. One should be used for a major top to bottom, and another should be a temporary pullback within that major top or bottom from recent swing high to swing low.
ideally you would want to change fibs whenever a new high or low is made.
I also read before that Fibonacci on really works when a pair is trending… so just don’t use it when price is ranging and trading within a box haehe
It depends. You need to experiment. I usually have two on each chart I watch. One for a significant swing which I measure from a 1D TF, and then on a smaller 4H time frame for the most recent swing.
The best thing is to try different fibs out. The price action while show you which ones you draw are significant and which ones aren’t.