This is the way I use Fibonacci to define trend in my trading. It is absolutely crucial in trading to understand where price is (in terms of trend)
in every time frame. Some traders use wave analysis, some use moving averages, some use fibs and some use a combination
of everything. I am a visual trader and like to define zones of probability using fibs in this way.
All of my trades are made in the context of trend. I use this methodology to trade breakouts,
pullback and reversals.
in every time frame. Some traders use wave analysis, some use moving averages, some use fibs and some use a combination
of everything. I am a visual trader and like to define zones of probability using fibs in this way.
All of my trades are made in the context of trend. I use this methodology to trade breakouts,
pullback and reversals.
Comment:
Here is a detail of how I use the Fib zones to define trend across multiple time frames. One can also use moving averages in this way to find the strongest instruments. ie look for instruments that are above all MAs. I do that when I scan, however, I default to Fibs because they can define zones as apposed to just letting me know if price is above or below a line.
