I'll give you a few tips trades using a simple tool, is Fibonacci Retracement. I also use it for my daily trading setup. Let's get started.....!!!!!!
What is the Fibonacci Retracement ?
This is a useful tool for determining levels of support and resistance in a long-term trend. Here are a few levels of this very important area for us to use, ie level 38, 50, 61.8, 78.6 .
The important levels are useful to determine when to buy and sell. Remember, Fibonacci can not stand alone, he should be used along with the price action. Because the price action is useful to know candlestick patterns when prices were at levels Fibonacci.
How and When to use Fibonacci ?
First you have to draw two points Fibonacci comprising swing high and swing low. I use the STEEMBTC market for example. I use 4H timeframe.
like this :
You will see some level as seen in the image above. Look at important levels only, 38, 50, 61.8, and 78.6 . There you will see the price reaction to these levels.
There is a 4x rejection at important levels, depicted with a price action that I put a blue square. After the rejection seen that the price trend continued, is a down trend. I marked using black arrow. At the critical level you may take a position to sell or buy. You can also use a pending order if the price has not approached that level. To take profit at the level of 100 and 161.
Conclusion
I also often use fibonacci to setup my daily trading, because this tool is complete in accordance I needed. Tools are also very simple because it describes the actual tools support levels and resistance. I personally prefer to use pending orders at important Fibonacci levels, because I think it also helped me to control psychological trading. There is also a myth that 61.8 is the best position to take on the position of buying and selling, but in my opinion it is not 100% correct. Indeed, as long as I use Fibonacci, prices are often located at the level of 61.8. But remember not to stare at level course, also use price action to further convince your analysis when it will take a position to sell or buy. Again, no tools are 100% always right, it just depends on how we use it.
I am not responsible for any damages if you use these tools for trading setup, I'm just sharing my trading setup tips. If these tips do not fit your trading style, it is better not to use. Again, indicators and tools is not the only thing that matters in the trades, but a psychological one who will decide how strong you can survive in the world of trading. 30% of indicators, 70% psychological and money management.
I very much respect if you want to give feedback if there is something wrong or not quite right with my posts.
(Sorry if my english is not so good)
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