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Fibonacci Retracement Can Help You Enter The Trend
By Mike | August 29, 2010
Trend is your friend so never try to fight it . But still you will find a number of traders try to trade against the trend and losing money fighting the trend . Now, it is possible to make money trading a counter trend move . Most of the time, you will be stacking the odds against you and asking for trouble . Download this 1 Minute Forex Trading System FREE that makes money instantly anytime you want even if you haven’t traded forex before. Download this powerful Forex Swing Trading End of Day Trading Kit (100 page PDF plus Videos) FREE!
Trend can be up or down. When it is up, we call it uptrend and when it is down, we call it downtrend. . These trend traders don’t simply enter the trend in a random fashion but rather they enter at a point when they think that the market is making a pullback .
Prices never rise or fall in a straight line . In a trend, there are always periods of pullbacks and consolidations when the market tries to take a breathing spell and consolidate . In a trend, a pullback can take place at the prior support in case of an uptrend or a resistance level in case of a downtrend . Now, this pullback can take place around round numbers. These round numbers are very important and act as psychological levels where large buy or sell orders take place. A pullback can also take place at the Fibonacci Level . Learn a powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade easily!
Experienced trend traders use these Fibonacci Retracement Levels as their point of entry in the trend when the trend is making a pullback . In a trend, the directional move in the market will often tend to retrace itself by a certain percentage points. The most important Fibonacci Retracement Levels are the 38.2%, 50% and 61.8%. Price action often tends to pullback at these levels. Most of the experienced traders take their entry or exit decisions at the Fibonacci Retracement Levels .
Topics: Forex |
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