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Fibonacci retracement application

Investors are often confused: when forexdiscountbrokers the most appropriate time to enter the market in the trend?  If you enter too early, even if you correctly grasp the market trend, you will still face the risk of retracing the price of the currency, the risk of closing your position with a stop loss. If you enter too late, the trend may have already begun to reverse when you open a position to buy, only to find that the trend has turned from up to down, just now the acceleration of the currency price is just another forexbonusrebate of this is like a train has left the station, and you are trying to catch up, but ultimately only in vain!  In this article, we will introduce a common method and explain how investors can use it to find the right entry points in trending markets. This method helps investors buy low and sell high to earn as much spread as possible in trending markets and it is all based on the study of the cashback forex series How to apply Fibonacci retracements Before investors can apply Fibonacci retracements, they must first correctly determine the current As with other technical analysis methods, longer time frames contain a larger sample size, more investors are watching closely, and are more effective in determining trends. The chart below depicts how to plot a Fibonacci retracement into the trending market on the chart above. The chart zooms in on the part of the chart above that is boxed in green so that the reader can see more detail   Fibonacci retracement forex discount brokers Fibonacci retracements are characterized by a series of special retracement levels that are often seen as potential support levels. These levels are often seen as potential support or resistance levels Once the Fibonacci retracement is applied, the space between the two retracement levels is seen as a volatility range for the exchange rate, and the retracement levels act as support or resistance The most popular Fibonacci retracement levels are based on the study of the Fibonacci sequence and are often associated with the golden mean of 0.618 This level is often referred to as the 61.8% therefore trend line The 61.8% level is often considered a key potential resistance level Based on the 61.8% retracement level, investors use the complementary value of the golden mean (1 - 0.618 = 0.382) to construct another important Fibonacci retracement level of 38.2% The other two commonly used levels are 76.4% and its complementary value of 23.6% Investors also often use the 50% level, although this The chart below highlights these common levels:   These levels are closely related to the initial trend of the market If investors want to enter at the 38.2% retracement level, then when the exchange rate retraces to that level, investors should watch for the possibility of the market moving in the original direction Using Fibonacci retracements to trade trending markets Now that investors have identified the limiting level for the retracement of the exchange rate The next step is to wait for the retracement to hit these levels and when the exchange rate hits these levels, investors can open positions in the direction of the original trend; looking for opportunities to earn carry by going short on the highs or long on the lows In the EUR/USD trading chart, investors can apply Fibonacci retracements to open short positions when the exchange rate hits these established levels The chart below further depicts this scenario:   Using Fibonacci retracements, investors should be aware that these retracement levels do not have the same strength of support or resistance, so it is recommended that investors wait for these levels to form a true support or resistance level before entering, and once support or resistance is formed, investors can enter the position in the original direction, with a stop loss set below the support level (or above the resistance level)
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