Fibonacci Calculator - A Powerful Technical Tool
The Fibonacci calculator will show you the retracement and extension levels according to the popular Fibonacci theory used in forex trading.
| Retracements | |
| 0% (b) | |
| 23.6% | |
| 38.2% | |
| 50% | |
| 61.8% | |
| 76.4% | |
| 100% (a) | |
| 138.2% | |
| Extensions | |
| 261.8% | |
| 200% | |
| 161.8% | |
| 138.2% | |
| 100% | |
| 61.8% | |
| 50% | |
| 38.2% | |
| 23.6% | |
| Retracements | |
| 138.2% | |
| 100% (a) | |
| 76.4% | |
| 61.8% | |
| 50% | |
| 38.2% | |
| 23.6% | |
| 0% (b) | |
| Extensions | |
| 23.6% | |
| 38.2% | |
| 50% | |
| 61.8% | |
| 100% | |
| 138.2% | |
| 161.8% | |
| 200% | |
| 261.8% | |
How to define Fibonacci for forex trading?
Generally, traders use Fibonacci patterns to find the retracement of the current trend. Price movements in the forex market dynamically tend to "bounce" (retrace) from the Fibonacci lines, where these lines represent certain price levels that market participants always monitor before they trade. The stages are divided into the following series of numbers:
- Retracements: 0, 0.23, 0.38, 0.5, 0.61, 0.78
- Extensions: 1.27 and 1.61
If the trend is relatively strong because it is driven by certain high impact events, the price will dash through the retracement limit and is likely to experience a reversal after hitting the limit on the extension line.
Continue Reading at 5 Powerful Strategies of Fibonacci Patterns
How to enter the market with Fibonacci retracement?
Fibonacci retracement is well-known as an extremely powerful indicator. Its main feature is its ability to point out levels at which pullbacks and reversals are triggered. Therefore, forex traders surely will be able to use it as an entry strategy.
To further increase the accuracy of your entry, you could combine Fibonacci Retracement with a little bit of candlestick analysis. It will be good if you have mastered candlestick pattern analysis, but even if you do not, you should still be able to use it if you know a couple of key reversal signals depicted by candlestick formation, such as doji.
Continue Reading at How to Find Entry and Exit Points in Trading
How to apply pullback strategy with Fibonacci and trendline?
- Identify the Trend: Determine whether the trend is bullish or bearish.
- Select Time Frame: To minimize price noise, it is advisable to utilize 1-hour or longer time frame.
- Determine Peak Points: Find the most recent swing high and swing low points to draw Fibonacci retracements.
- Entry at Fibonacci Levels: Look for opportunities to enter trades when there is a retracement between the 50% and 61.8% Fibonacci levels.
- Determine Exit: Set stop loss and take profit orders based on the latest swing points.
Continue Reading at 5 Pullback Trading Strategies to Try
How to use Fibonacci sequence as the basis of AB = CD pattern?
At first glance, the AB = CD pattern looks like a zigzag pattern. But keep in mind that the lines are not just drawn without certain conditions.
- The leg of the AB line is drawn from the lowest price (low) to the nearest high.
- Next, for the retracement of the AB leg, the BC line should be at the 0.38 to 0.78 retracement level (ideally at 0.68) from the AB line.
- The leg of the CD line is drawn from the low of the BC line towards the next high with a limit of 1.27 to 1.68 extension of the BC line.
Continue Reading at 5 Powerful Strategies of Fibonacci Patterns
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