How to draw Fib retractment levels

I was wondering how far back you go when looking for swing highs and swing lows to draw your retractment levels. I mean, you could just look for the most recent mini trend and use the swing highs and lows for that, or you could look father back and use the swing lows for a much bigger, older trend. Is there an optimal range (in terms of how many candlesticks you go back) you should focus on when choosing these swing lows and highs?

Thanks :slight_smile:

Any ideas?


It all depends upon your trade system & is basically the same as the trend.

Which trend are you following, the 1m 1H 1D 1M?

Which ever timeframe it is, take a fib of the highest swing points on that time frame.

But when you learn more you will understand to take note of what is happening
in the bigger picture. ie scalper, whats the trend on the 15M, 1H etc.

It’s from the high to low of the last ‘move’ on the chart, you want to be able to identify a clear move on the chart, if it’s rangy and messy, there has been no move that it will retrace from, so you just dont use a fib when it’s like that.