How To Use Fibonacci Retracement With Trend Lines

How To Use Fibonacci Retracement With Trend Lines

Another method that can be combined with Fibonacci retracement to produce maximum predictions is trend lines. Also keep in mind that Fibonacci retracement will produce powerful power when the market is trending so this combination will definitely attract many traders to use it.
Many traders use the Fibonacci retracement level to enter a market that is in a trending condition either downtrend or uptrend.
Following is an example of a combination of the two methods. Here is an AUD / JPY chart for 1-hour period. The price of this currency pair shows an uptrend in a few days.
In your heart you think that this is an uptrend and is the right time to open BUY position against these two currency pairs. But what are you waiting for at the price to enter the market?
Before you open a position with an arbitrary price, the right first step is to open the tool that is Fibonacci retracement and pull it into the trending and see how many levels appear.
Here we draw the Fibonacci retracement with the swing low at 82.61 and swing high at 83.84.
Note that the 50% and 61.8% Fibonacci retracement levels intersect with trend lines. And can both levels become support and resistance? there is only one way to find out.
As we can see that the 61.8% Fibonacci retracement level is able to hold on before the AUDJPY currency pair price continues the uptrend movement. And if you enter this price area then it is certain that you will get a profit that is not only good.


1 comment

  1. Pingback: Know the Candle Formation: Triangle and Flag - The Best Forex Signals 2019, No Repaint.

Comments are closed.

News Feed