Thread: Fibonacci Fan? How do you trade with it?

I really don't like Fibs, they feel like medieval supersticion to me personally. Not saying it will not work for someone else. However, I really don't like Fibs.

Many traders say that Fibonacci is one of the most trustworthy technical indiors.Could anybody share his understanding of Fibonacci numbers?

went long @ 62 fib

I've used many times, but didn't secure maximal outcome. But so many traders recommend it very strongly

From the little knowledge I've for fibs they ought to be treated just like support/resistance levels. Important levels are 38% 62% and 162% (note that I rounded off the numbers). Most important is 162%. When price breaks out of the amount, it retests (price retraces back) that amount again typically. Fibs ought to be ploted when a trend has ended, not during a trend.

Should you utilize meta trader and a down trend has ended, draw the fibs from where this tendency started (the 100% amount will be ploted at the begining of tendency) and allow the 0% amount be ploted at which the tendency ended. The opposite is true if there was an up trend.

It is also possible to use it on a single candlestick from its top to its low if it's a bullish candlestick, or by its low to its high if it's a bearish candle. Make sure that it's a strong signal in that situation, otherwise do nothing. An engulfing pattern is really a strong signal. Additionally, it depends upon where it forms (for example on a support/resistance degree or bollinger band breakout or end of a trend).

That is how it's used if I remember correctly.

But remember, fibs and many other technical tools functions best on daily time frame and above.

EDIT: Sorry, I saw you were talking about Fibo Fan, I thought you were discussing the customary fibo.

Fibo is among the most common technical instrument! Yes, I additionally us Fibo, I work on 23, 50, and 61 levels of fibo! In addition, I utilize fibo for a support and resistant level!

61.8 is Fibo's very best degree! When I get any candle pattern from 61.8 degree then use this chance of trading with enough quantity of trading lot size! Fibo is helpful for the long term as well as short term trading!

Yes, 61.8 is among the most crucial degree of Fibo! From my 1st day of live trading I utilize Fibo for my demonion trading experience was too good with this technical instrument, moreover, 50 and 23.6 levels are also useful.

Originally Posted by ;

Fibo is one of the most popular technical tool! Yes, I additionally us Fibo, I work on 23, 50, and 61 degrees of fibo! In addition, I utilize fibo as a resistant and support level!

Yes, fibo works as support/resistance degree! As a scalper I like to utilize fibo! This technical tool helps me to recognize impotent heights of the current chart!

Originally Posted by ;

You will find many trading methods and methods traders use to create trading decisions.

The one I want to address within this thread, is that the Fibonacci Fan:

On an ” up ” Fibo Fan; do you short when price breaks under the 61.8 Fibo trend line, or would you wait for a violation of the 0.707 level to short? Do you place your Stop loss in the prior Swing high? Or, would you think about taking a lengthy, at lets say, the 0.786 or even 0.886 degree? (all over vice versa to get a ” down ” Fib)

I'd be interested to hear how you make the most of the tool.

You don't trade using a fib fan, you use it for analysis subsequently make your commerce based from your own conclusions.