When drawing Fibonacci is their a correct way of drawing it?
Example we are using the retracemet on a uptrend. Some people would choose the recent swing low and others would use a swing low that caused the start of the uptrend.
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Is their a correct way in using fib retracement?
If there is an extended move then I tend to draw my Fib lines several times, using a number of the lows and highs. It is amazing how often multiple percentage layers cluster around the same Price level, which can suggest that that is a particularly strong S/R level. If there is a series of swing lows, draw the Fib over each of them and sometimes a Price level stands out immediately. But if only drawing one frame then I would use the most recent swing low.
Same tactics from me! I think, this is the most decent way of using the fibo; no doubt fibo is one of the best way tracking the market trend.
Look for Support & Resistance on a chart with a nice trend or range, look at Fibs, PA and some RSI to give me another supporting argument and I’m in. Basically, keep it simple!!
I completely agree with @SimonTemplar
BTW, great to see you again Simon! It’s nice to see people from “back in the day” still active in the forums.
Thank you, you too!
I have traded continuously since 2009, but we have four kids and run a couple of businesses, plus my wife has a proper career job, so something had to give somewhere, and my forum participation was sadly part of that. Then our youngest started big school in September last year (she’s five, and in charge), so I have emerged, blinking, back into a world without having a toddler at home 24/7. And BP has changed so much!! But yes, it’s good to be back.
Sorry, OP, for the brief hijack.
Default sitting or anything else? By the way, I also use S/R with my PA trading knowledge.
I liked these words; same here! But I see, few traders used so many trading tools even the chart is not clear at all.
Sorry to be so slow replying. Kids off school!
I generally just leave it on standard settings - I look to have a basket of reasons to enter a trade, and RSI is really just a final piece of supporting evidence for me, rather than the main reason, so I have always found that standard setting work fine. I have tweaked from time to time but never found a compelling reason to use anything other than standard over time. I generally form an opinion looking at the chart, then throw some levels on, then look at other TFs. At that point I generally have a good idea what I’m thinking. If RSI joins the party then great. But it isn’t central.
Thanks a lot for your reply! Hope for the best; happy learning.
