Fibonacci is used to determine support and resistance levels within an identified trend. They can take many formations based on your trading techniques. Here we have examples using the fibonacci tool to find support and resistance levels.
The most import fibonacci levels are the 0.382, 0.5 and 0.618 levels. The 0.618 known as the goldern ratio is the most popular for a strong support and resistance level. For finding targets of resistance, we use 0.618, then 1, 1.212, 1.414 and finally the 1.618 as the major resistance or top for that Elliot cycle. Here below we provide a few examples in how to find and use them.
Exercise 1
Basics on applying fibonacci
This is a tutorial for people who are just starting off using tradingview and how to use the fib. retracement toolset on the charts to find a good level of interest, to enter a trade. We cover how to apply the fib. on long trades and shorting.
Exercise 2
How to determine Longs profit taking targets
Using Fibonacci extension.
Exercise 3
How to determine shorts profit taking targets
Using Fibonacci extension.