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| You need Fibonacci retracements for your technical trading. But don't be put off by this arcane-sounding indicator. Software programs, including Real Tick and qCharts, have Fib grid tools that do most of the work for you. Just set the inside levels to 38%, 50%, 62% and then forget about them. Locate the extremes of dynamic trend moves and stretch the grid from high to low. Better yet, overlay multiple grids of different lengths that capture interrelated trend moves and corrections. Then look for interactions between major retracement levels. The rules are simple: markets tend to reverse after retracing 38%, 50% or 62% of dynamic trends in all time frames. Retracements that pierce 62% signal that the trend in that time frame has ended and a 100% retracement should be expected. |
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