In today post, I am going to introduce you to the forex fibonacci indicator as this is one indicator that I am always using in my trading.
In fact, this is an indicator that is commonly used by professional traders and therefore you will usually see the price respecting the Fibonacci level.
So What Can This Forex Fibonacci Indicator Do?
The fibonacci indicator is made up of retracement and extension. The retracement of this indicator serves as a level of strong support and resistance which can be used as an entry tool.
Personally I find the Fibonacci 0.382, 0.500 and 0.618 retracement level more responsive than the other 2 levels.
As for the extension, they provide good level for traders to exit their position.
When the price hits the 0.382 Fibonacci level, a good place to exit your position will be at 1.272 extension level.
When the price hits the 0.500 and 0.618 Fibonacci level, you can then used the 1.500 and 1.618 extension level to exit your position.
If you are able to find levels where they are overlapping Fibonacci retracement levels, you will be able to trade with higher winning probability as these levels are areas of very strong support or resistance. You will usually see the price being repelled by them.
If you are not good at using Fibonacci, you can take a look at the forex mastery course that I have created to help new traders make money from trading.