Fibonacci levels are a very powerful tool in trading forex. They can be traded in isolation or in combination with other signals, for example candlesticks, indicators or chart patterns. Applicable on any time frame from 5 min chart through to weekly charts. When putting fibonacci levels on the charts, one must look back on each time frame for significant highs and lows. We use fibonacci as confirmation signals to entry and exit points or to set our profit target.Retracemets Levels
The best way to determine whether a move is a pullback (retracement) or not is to determine whether the price is moving in the direction of main trend.If the price is moving against the main trend watch for the reversals at the 38.2%, 50% or 61.8% Fibonacci Lines. It is important to wait for a confirmation signal before re-entering in the reverse direction.