![]() The 50.0% level held as initial support, then became an area of interest.Here’s what happened after the price reversed from the Fibonacci retracement level: Let’s put up that Fib Extension tool to see where would have been some good places to take profits had we shorted at the 61.8% retracement level. Price then reversed as sellers jumped back in, and brought price all the way back down to the Swing Low. Here, we saw a doji form just under the 61.8% Fib level. Let’s take another look at that downtrend on the 1-hour EUR/USD chart we showed you in the Fib Sticks lesson. In a downtrend, the general idea is to take profits on a short trade at a Fibonacci extension level since the market often finds support at these levels. Now, let’s take a look at an example of using Fibonacci extension levels in a downtrend.
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