Flashcards in Fibonacci Trading Deck (16)
Fibonacci retracement levels work on the theory that?
after a big price move in one direction, the price will retrace or return part way back to a previous price level before resuming in the original direction.
Traders use the Fibonacci extension levels as?
profit taking levels
A Swing High is a candlestick with?
at least two lower highs on both the left and right of itself.
A Swing Low is a candlestick with?
at least two higher lows on both the left and right of itself.
The first thing you should know about the Fibonacci tool is that it works best when?
the Forex market is trending.
In trading Fibonacci Retracement the idea is to go long on.
on a retracement at a Fibonacci support level when the market is trending up, and to go short (or sell) on a retracement at a Fibonacci resistance level when the market is trending down.
In order to find these Fibonacci retracement levels, you have to?
find the recent significant Swing Highs and Swings Lows.
In finding Fibonacci Retracement Levels for downtrends, click on the?
Swing High and drag the cursor to the most recent Swing Low. For uptrends, do the opposite. Click on the Swing Low and drag the cursor to the most recent Swing High.
In an uptrend, the general idea is to take profits on a long trade at a Fibonacci Price?
The key Fibonacci retracement levels to keep an eye on are:
23.6%, 38.2%, 50.0%, 61.8%, and 76.4%.
The levels that seem to hold the most weight are?
38.2%, 50.0%, and 61.8% levels, which are normally set as the default settings of most Forex charting software.
Remember that Forex traders view the Fibonacci retracement levels as?
potential support and resistance areas.
Similar to the retracement levels, the key Fibonacci extension levels are:
38.2%, 50.0%, 61.8%, as well as the 100%, 138.2% and 161.8% extensions.
A Swing High is a candlestick with at least?
two lower highs on both the left and right of itself.
A Swing Low is a candlestick with at least?
two higher lows on both the left and right of itself.