How to draw..

[ayex]

Hello,
I've gone through the "school", but left disappointed since there was almost nothing on how to draw Fibonacci Retracement and exactly the places on which to start drawing it.

"A Swing High is a candlestick with at least two lower highs on both the left and right of itself.
A Swing Low is a candlestick with at least two higher lows on both the left and right of itself.
In order to find these retracement levels, you have to find the recent significant Swing Highs and Swings Lows. Then, for downtrends, click on the Swing High and drag the cursor to the most recent Swing Low.
"

This is way insufficient and also incorrect regarding some images shown there.

[Richard87]

draw it from the last swing high to the last swing low, and try looking for a swing that is at least 40pips big

[jwlee7ucla]

To simply babypips, If yo u want to draw a fib, pick a significant high, and a significant low. Thats all there is to it.

If you are looking to buy, you draw your fib from low to high.

If you are looking to sell, you draw your fib from high to low.

Doesn't get much simpler than this theoretically. The only hard part is picking the right highs and lows.

[ayex]

draw it from the last swing high to the last swing low, and try looking for a swing that is at least 40pips big

And how do I determine which is first and last since it appears that not this last is not the highest/lowest one in some charts

[The Hunter]

Use the obvious highs and lows to begin with.

If you are using MT4 then use the fractal indicator to further high-light the highs and lows. Once you see a swing in price start to retrace, then pull your fib in the direction you want to trade and wait for price to retrace to your pre-determined price level.

As previously stated, look for a swing of at least 40 pips if you are trading from one pivot to another. This means that if you have a 20-30 pip stop loss then you will be able to move it to break even and remove your risk exposure, even if the trade goes against you. If you are trend trading and looking to get in sync with the higher time frames then you can look for swings smaller than 40 pips.

[Dominator4fx]

Use the obvious highs and lows to begin with.

If you are using MT4 then use the fractal indicator to further high-light the highs and lows. Once you see a swing in price start to retrace, then pull your fib in the direction you want to trade and wait for price to retrace to your pre-determined price level.

As previously stated, look for a swing of at least 40 pips if you are trading from one pivot to another. This means that if you have a 20-30 pip stop loss then you will be able to move it to break even and remove your risk exposure, even if the trade goes against you. If you are trend trading and looking to get in sync with the higher time frames then you can look for swings smaller than 40 pips.

When i use a swing trading system then i always look on a higher time frames.

Typically i will advise that you must look on H1 and range of 120 pips on the lower side when considering the higher moving currency pairs like the EURUSD.