We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • $GBPUSD Cable right back to 3117 https://t.co/l6K8QP871u
  • 6-3 Unchanged..... Vlieghe to join doves.... BoE to wait for hard data post GE. Also, fiscal stimulus will be coming https://t.co/ZNmq5hxhtM
  • Two Central Banks (BoE, RBA) Money markets roughly 50/50 as to whether they will cut or not Both awaiting key data - UK PMIs - Aussie Jobs + Inflation $GBPAUD https://t.co/e9mujWOM24
  • US President Trump says he thinks that he will have a deal with the EU before the US Presidential election
  • Hey, traders 👋 do you want live AMAS with our analysts, market updates and tools to improve your trading strategy? Join us now on Instagram! 👉 https://t.co/pHGzVMqsC4 https://t.co/ZYQz2ctfi0
  • 🇺🇸 USD MBA Mortgage Applications (JAN 17), Actual: -1.2% Expected: N/A Previous: 30.2% https://www.dailyfx.com/economic-calendar#2020-01-22
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.34%, while traders in US 500 are at opposite extremes with 75.49%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/aE7uwR7NCl
  • Heads Up:🇺🇸 USD MBA Mortgage Applications (JAN 17) due at 12:00 GMT (15min), Actual: N/A Expected: N/A Previous: 30.2% https://www.dailyfx.com/economic-calendar#2020-01-22
  • GBP/USD Downtrend Move Cracks, Bears at Risk - GBP vs USD Price Outlook More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2020/01/22/GBPUSD-Downtrend-Move-Cracks-Bears-at-Risk-GBP-vs-USD-Price-Outlook-MK.html?CHID=9&QPID=917714 https://t.co/a7iJ9eZbh1
  • Brilliant https://t.co/StYFbqnTU0
Tips on the Fibonacci Tool

Tips on the Fibonacci Tool

2010-05-12 01:40:00
Richard Krivo, Trading Instructor
Share:

Instructor's Response:

 Yes...

 
That is the way that the Fibonacci tool would be used in a downtrend.  Keep in mind, however, that price can retrace beyond the 50.0% level. Wait until  the 50% level is tested twice before making the determination to take a short position. Then a stop can be placed a bit above the highest wick in the formation.
 
Also, for the most accurate usage of the Fib tool, be certain that the line is drawn from the top of the wick on your Swing High to the bottom of the wick on your Swing Low in a downtrend. The reverse would be true in an uptrend.
 
See the chart below for an example...
 
chart 5 11 10

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.