|Welcome to currency trading with Profiforex!
To apply the Fibonacci Retracement to the chart, use the sequence "Insert" - "Fibonacci" - "Retracement."
|There are two main principles of trading using Fibonacci retracement: "trading during trend" and "trading during flat."|
When trading during flat, we're primarily interested in the internal support and resistance lines.
Our first point is "zero": the bottom point of the flat.
The second point is "one hundred," which is the highest point of the flat.
With the red line we will separate the prices that we didn't know about while plotting the Fibonacci retracement.
As we can see, the lines of the Fibonacci retracement consistently become key points
as well as powerful support and resistance levels for the whole chart.
So, we can better understand price movements and clearly make a decision on the entry and exit points of the deal trading "from one level to another."
|The other principle of plotting the Fibonacci retracement is used during a trend. Here we take the flat channel, which preceded the trend,and impose the fibonacci retracement on it .|
Subsequently, we get the prices on the 161.8, 261.8 and 423.6 levels.
These prices are usually target prices,and when they're achieved it means either a quick rollback to the previous prices
or a jerk and move on to the next price.
|When the price is near the key price levels, you should monitor the price behavior and be prepared to close the deal.|
|It should be emphasized that the above is only an introduction. It's a general description of the Fibonacci strategy. We simply want you to understand the general principles of plotting the Fibonacci retracement.|
If you plan to use it to earn money in the Forex market,you need your own research and the completion of different strategies to suit your way of thinking.