Look, 61.8% Fib rate, prices bounce there before going back up. If you have placed an order at that level, you will have the perfect entry!
A few hours after touching the trend line, prices that were enlarged like Astroboy, exploded past swing high.
Are you not happy you have this in your forex toolbox now?
Fibonacci and Candlestick
You can combine Fibonacci tools with support and resistance and trend lines to create super cool but simple trading strategies. But we are not finished! In this lesson, we will teach you how to combine Fibonacci tools with your knowledge of Japanese candlestick patterns.
In combining the Fibonacci tool with a candle pattern, we will look for a complete candle that can tell us when the pressure of buying or selling is exhausted. This can provide clues about when prices will continue to follow the trend.
We will call it “Fibonacci Candlesticks,” or “fib sticks” in short. Interesting enough, huh? Let’s look at an example to make this clearer.
Below is the hourly EUR / USD chart.