Fibonacci Complete Guide
This set of tools is widely used in the financial markets
Because it can reflect the support and resistance levels of market psychology
Prices often pause or accelerate near these levels
It is an indispensable weapon for trend followers
1. Why use Retracement
Used to identify when the 'correction wave' in the driving wave ends. When the price retraces to key levels such as 0.618, it is often the best time to return to the main trend direction
2. Expansion and Extension
• Expansion: Determines the position where after the third wave runs, it may revert from the second wave back to the first wave area
• Extension: Identifies the end point of external fluctuations, looking for points where the price reverses back to the previous wave trend
1. Common Tools and Selection
In addition to the most commonly used Retracement and Expansion, there are also advanced tools such as channels, fan lines, arcs, and time intervals
Choosing corresponding tools based on different market characteristics can make your predictions more accurate
2. Precise Strike Entry in 4 Steps
Identify the distribution phase of the small cycle
Wait for the price to test the supply zone
Enter after breaking through the supply zone or ascending wedge
Set the take-profit at the level of previous key low points
Learn this set of combination punches
You will find your own compass amidst market fluctuations