Forex Trading

Fibonacci (Fib) strategy in forex trading:

1. The Fibonacci strategy is based on retracement and extension levels drawn from price swings.

2. Traders use it to identify potential support and resistance zones in the market.

3. The most common retracement levels are 38.2%, 50%, and 61.8%.

4. These levels help predict where price may pull back before continuing in the main trend.

5. Entry signals are often taken when price reacts or rejects at key Fib levels.

6. Stops are usually placed just beyond the retracement zone to limit risk.

7. Profit targets are often set at Fibonacci extensions like 127.2% or 161.8%.

8. The strategy works best when combined with trend analysis and candlestick confirmations.

9. It can be applied on multiple timeframes for both swing trading and intraday setups.

10. Used properly, the Fib strategy provides structure and precision to trade entries and exits.