Anyone who can explain to me more about fibonacci and how its used
Its almost the last indicator you should try.
Start with moving averages. Supplement this with either RSI or MACD if you have to. If you’re still not making money, jumping to Fibonacci’s will not change this.
This may help
Thx for that
You need to take the lowest and the highest point on the chart and use Fibonnaci ratios (23.6% to 100%) to divide the distance. It helps in determining trends.
I suppose that it is the last indicator that I would suggest anyone to use while trading.
Fibonacci retracement levels are based on fibonacci numbers and every level is signified by a percentage. This indicator is considered useful because it is drawn between any two significant price points (high and low) and it aims to create a level between the two price points.
I find Fibonacci retracement quite difficult to use. I am not sure if I will ever use it.
The Fibonacci retracement is a tool that you can use to help you find good entry points in a continuation of a trend. As you know the price never goes in one direction; there is always an impulse move then a retracement before another impulse move. So the Fibonacci retracement is good tool to help you spot where the retracement might end before we have another impulse move.
It uses the fibonacci numbers and there every level is identified with a particular percentage. The fibonacci retracement carefully creates a level between two price points, be it high or low. It is a useful indicator.
Fibonacci retracements are popular among technical traders. It is a popular tool that traders use to draw support lines, identify resistance levels, place stop-loss orders, and set target prices. It is created by taking two extreme points on a chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%. But it also suffers from some drawbacks as other universal trading tools, so they are best used in combination with other indicators.
It basically shows various different fibonacci levels. You just have to identify the trend properly before you can successfully place this scale. Usually it used to identify retracements in the prices of an asset. Not that popular but can still be helpful if correctly used to identify whether it is a retracement or whether a new trend has begun.
It is also a method of technical analysis that helps in determining the support and resistance levels.