How To Use Fibonacci Extensions To Ride Trades And Find Profit Targets

Описание: The Fibonacci tool is very popular amongst traders and for good reasons. The Fibonacci is a universal trading concept that can be applied to all timeframes and markets. There are also countless Fibonacci tools from spirals, retracements, Fib time zones, Fib speed resistance to extension.

In this video, I will explain how to correctly draw a Fibonacci sequence and how to use the Fibonacci extensions for your trading.


How to draw Fibonaccis – just do it
Often, traders who have no prior experience with Fibonaccis are worried that they are ‘doing it wrong’ and they then don’t use the Fibonacci tool at all. I can assure you, there is no right or wrong when it comes to drawing Fibonacci and you will also see that different traders use Fibonacci in slightly different ways.

The Fibonacci levels are %-based which means that even when you draw them differently, they will often line up correctly.


Step 1 – Find an ‘A to B’ move
To use the Fibonacci retracements, you have to first identify an ‘A to B’ move where you can use the Fibonacci retracement tool. What do we mean with ‘A to B’?

A = the origin of a new price or trend move. These are usually swing highs and lows, or tops and bottoms.

B = Where the trend move pauses and reverses to make a retracement.
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