Fibonacci Retracement Strategies in Indices Trading
Fibonacci Retracement is an indicator used in indices trading to calculate stock indices trading price retracement levels in an upward or a downward indices trend.
Fibonacci retracement levels are used by stock indices traders to place stock indices trades and open stock indices trades at a better stock indices trading price after stock indices trading price has resumed moving in the original indices trend direction after retracing.
What are Stock Indices Fibonacci Retracement Zones?
- 23.6% Stock Indices Trading Fibonacci Retracement
- 38.2% Stock Indices Trading Fibonacci Retracement
- 50.0% Stock Indices Trading Fibonacci Retracement
- 61.80% Fibonacci Retracement
38.2% and 50.0% Fibo Retracement Areas are most oftenly used
most of the times this is where the stock indices trading price retracement will reach - with 38.2% Fibonacci Retracement Level being the most popular & most widely used retracement level in indices.
61.8% Fibonacci Retracement Level is also commonly used to set stop loss for trades opened using this indices retracement strategy.
What is Fib Retracement Strategy using Fibonacci Retracement Areas?
What is Fib Retracement Strategy using Fibonacci Retracement Areas?
Fibo Retracement Strategies in Indices Trading - Fibonacci Retracement Technical Indicator Tool Explained
Fibo Retracement Strategies in Indices Trading - Fibonacci Retracement Technical Indicator Tool Explained
How Do I Draw Stock Indices Trading Fibonacci Retracements?
Fibonacci Retracement Levels tool is plotted in direction of the trend as shown in the two Fib retracement example below:.
Fibonacci Retracement Strategy using Fibonacci Retracement Levels
In the technical analysis example explained and illustrated below the stock indices trading price is moving up between chart point 1 and chart point 2 then after chart point 2 it retraces down to 50.0% retracement level then stock indices trading price continues moving up in the original upward trend. Note that this stock indices retracement indicator is drawn from point 1 to point 2 in direction of the trend (Upward Direction).
How Do I Trade with Stock Indices Trading Fibonacci Retracement?
Fibonacci Retracement Strategy using Fibonacci Retracement Levels in an Up Indices Trend
Once the stock indices trading price hit the 50.00% retracement level, this retracement level provided a lot of support for indices trading price, & afterward the stock indices trading market then resumed the original upward trend and continued to move upwards.
For this Fibonacci retracement strategy example, the stock indices trading price retracement reached the 50.0% retracement level, but most of the time the stock indices trading market will retrace up to 38.2% retracement level and therefore most of the time indices traders set their buy limit pending orders at the 38.2% Fibo retracement level, while at same time placing a stop just below 61.8% Fibo retracement level.
Fibonacci Retracement Strategy using Fibonacci Retracement Levels
In the Fibonacci retracement strategy example explained and illustrated below the stock indices trading market is heading down between chart point 1 and chart point 2, then after chart point 2 the stock indices trading price then retraces up to 38.2% retracement level then it continues moving downward in original downward trend. Note that this stock indices retracement indicator is drawn from point 1 to point 2 in direction of the trend (Downward Direction).
How Do I Trade with Stock Indices Trading Fibonacci Retracement?
Fibonacci Retracement Strategy using Fibonacci Retracement Levels in a Down Indices Trend
The above Fib retracement strategy example is a stock indices retracement trading setup where the stock indices trading price retraces immediately after touching the 38.20% Stock Indices Chart Fibonacci Retracement Level.
In this Fibo retracement strategy example the retracement of stock indices trading price reached 38.2% retracement level and did not get to 50.00% retracement level. It is always good to use 38.2% retracement level because most times the stock indices trading price retracement does not always get to 50.00% retracement level.
This Indices Retracement level provided a lot of resistance for the stock indices trading price retracement, this was the best place for a trader to set a sell limit order as the stock indices trading market quickly moved down after hitting this stock indices price retracement zone.
