hey guys,
i am wondering… if i am a day trader, where should i draw my fib levels? the previous day highest high to lowest low or what? what is the time guideline? within a day?or 2? or a week? to find the highest high to lowest low? where should i start?
I mostly do Swing Trading so it is usually 2-3 months but since you are a day trader you should measure anywhere from 15 mins - 1 day. It really depends on how frequently you trade. I would start from 15 mins and work your way up to find out what tactic works the best for you.
If yow are going to use fibs then you should always have this three:
Fib clustering certainly can prove to be useful. Convergence of 2 or more levels can be a strong level of support or resistance
Fibs should be drawn from swing high to swing low and vice-versa regardless of time frame.