How to use and draw Fibonacci retracement as trading strategies

Using Fibonacci retracement as indikator in the trade is a smart choice because by using this indicator making you can put a limit order , stop order or even Instant order with very accurate placement. Fibonacci Retracement will draw the points of potential support and resistance when its drawn so that you can take advantage from it. Then there are some things that you must understand when You trade by using Fibonacci Fibonaaci below :

1 . Strong Fibonacci Retracement level at 38.2 % and 61.8 %

At this level a lot of retracement will happen often then many traders taking advantage of this moment because of support or resistance is formed at this level is very strong and gives a signal that the trend will continue after a pullback occurs.

2 . Trend reversal level at the level of 23.6 % , 50.0 % 76.4 %

At this level when the price is stop right on the level or not it seems the trend to be unable to continue and  likely that the trend will change so that traders need to make the next step after several other contributing factors confirmed as a sign of a trend change. Never use just one signal to making order. You need about three confirmed signal before making Your order.

You can see in the picture above potential retracement levels are marked in red and the potential reversal levels are marked in yellow . So based on the above principles you can try to take the opportunity to trade when price has break the Fibonacci level which is a reversal area and wait until the price comes on retracement level later then if price bounces on retracement point you can place an order in accordance of the trend candle direction whether the trend is up or down and do not ever try to making order when the price has not been entered retracement point because trend reversal will occur often so it is very risky to making order at that level .

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