We are moving into advanced technical tools today with Fibonacci Retracement. This tool is essential for finding the most likely areas where the price will pull back to before continuing its original trend. It helps you pinpoint high-probability entry points with precision.

​📐 What is Fibonacci Retracement?

​The Fibonacci sequence is a mathematical relationship found in nature and markets. When applied to trading, it provides horizontal lines that represent key support and resistance levels.

🎯 How to Draw and Trade with Fibonacci

  1. ​Identify the Trend: Wait for a clear, established trend (either up or down).

  2. ​Draw the Tool (Uptrend): For a Long Trade (buying the dip), draw the Fibonacci tool from the Swing Low (0%) to the most recent Swing High (100%).

  3. ​Find Entry: Look for the price to fall into the Golden Pocket (0.618 to 0.5) zone. This zone offers the best balance of risk and reward for buying.

  4. ​Confirm Entry: Do not buy just because the line is hit. Wait for a confirmation signal (like a MACD Bullish Crossover or a bullish engulfing candle) at the 0.618 or 0.5 level.

    ​Risk Management Tip: When buying the 0.618 level, your Stop-Loss should be placed just below the next major support, often the 0.786 or the original swing low.

    ​Question: Do you rely more on the 0.618 (Deep Entry) or the 0.382 (Shallow Entry) for your high-probability trades? Why? Share your Fibonacci preference in the comments!


    ​#Fibonacci #TechnicalAnalysis #GoldenRatio #PrecisionTrading

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