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Fibonacci Trading Guide

The Fibonacci Trading Guide in Forex explains how to use Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8%, and 78.6%) to identify potential market pullbacks and entry points after trends. It emphasizes the importance of combining Fibonacci with other signals and provides tips for setting stop loss and take profit levels. The guide also includes practical examples for both bullish and bearish trades.

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munyamelavhulenda40
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75 views3 pages

Fibonacci Trading Guide

The Fibonacci Trading Guide in Forex explains how to use Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8%, and 78.6%) to identify potential market pullbacks and entry points after trends. It emphasizes the importance of combining Fibonacci with other signals and provides tips for setting stop loss and take profit levels. The guide also includes practical examples for both bullish and bearish trades.

Uploaded by

munyamelavhulenda40
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Fibonacci Trading Guide in Forex

How to Use Fibonacci in Forex

1. What is Fibonacci Retracement?

- It's a tool to find where the market might retrace (pull back) before continuing in the original

direction.

- Based on key levels: 23.6%, 38.2%, 50%, 61.8%, and 78.6%.

2. Why Use It?

- To find good entry points after a trend starts.

- To set stop loss and take profit points.

- To predict where price might bounce.

3. How to Draw Fibonacci

- Identify a strong move (either uptrend or downtrend).

- For uptrend: Draw from the bottom (low) to the top (high).

- For downtrend: Draw from the top (high) to the bottom (low).

- The tool will automatically show the Fibonacci levels.

4. What to Look For

- Price often retraces to 38.2%, 50%, or 61.8% levels before continuing.

- Look for confirmation signals (candlestick patterns, moving averages, etc.) near these levels.

5. Entry & Exit Tips

- Enter a trade if the price bounces from 38.2%, 50%, or 61.8%.

- Place stop loss a bit below/above the 61.8% or 78.6% level.


Fibonacci Trading Guide in Forex

- Set take profit at previous high/low or use next Fibonacci extension (like 161.8%).

Quick Tips:

- Always combine Fibonacci with other signals (trendlines, support/resistance, patterns).

- Avoid using it in a sideways (choppy) market.

- Practice on a demo account before real trading!

Practical Fibonacci Trade Example (Bullish)


Fibonacci Trading Guide in Forex

Practical Fibonacci Trade Example (Bearish)

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