The appreciable thing about Fibonacci instrument is that it can work amazingly at the time when the marketplace is leaning.
It is good to keep it or purchase with Fibonacci help. The time for purchasing is that when the market shows an upward trend. The graph line for items will go up and an atmosphere of purchase will be available. The time for selling is that when the souk is going down. At that time, the graph line moved downward and it will be good to sell the items. There are many retracement levels. We can know about these levels just by knowing about High swing and lows swings. If we have to know about downtrends then we have to go to swing High and then go to the Low Swing.
On the other hand if we want to check the uptrends then we have to click on the reverse way. In this way, we have to check the Low Swing and then go the latest High Swing.
In this video you will earn from Michale Boutros how to identify and implement the proper uses of Fibonacci in short & long term trading strategies :
If we have a graph for Fabonacci Retracement then we can check the levels just by clicking Low Swing and then going to High swing. After doing this, retracement will be shown by the software.
In case, the USD/AUD can start retracing from the latest High then Fibonacci steps will give help with it. At the end, the software will give us the whole history of retracement.
In case, the rate moves back to its present position and the same thing will keep on moving down for many weeks then after a certain level it will make a stop.
After its downward movement, it will start to move upward. It will keep on moving up and will go the highest level. So, it can give a lot of profit if we purchase at Fibonacci steps. It is always seen that the item that is at the bottom will keep on moving up in the graph.
The tool Fibonacci Retracement can be used for uptrend as well as downturns. Here, we are going to use it for downtrend.
There are many expectations related to the downturn. One of the important belief is that the repetition of the rate from small will have to face opposition from Fibonacci steps. The reason for it is that the dealers are ever ready for selling orders
We have given some examples to illustrate the uptrend and downtrend. The rate will have to face some kind of opposition or support when it is going up or down. The dealers who like to avail the help of fabonacci tool can see the steps where an item can face support or opposition.
The thing, which is always to be remembered, is that the rate cannot be recalled from the given levels. These levels can be cyclopip or having great interest for others. We can also give them a name Kill zone.
Fabonacci tools are helpful and provide a lot of information. But it is also very clear that it is a tough job to learn how to use Fabonacci tools. In case, the use of Fabonacci tools would be easy then all the traders will be able to use them and put their own orders at Fibonacci.