{"id":1174,"date":"2024-01-26T10:22:43","date_gmt":"2024-01-26T10:22:43","guid":{"rendered":"https:\/\/tradeafricahub.com\/?page_id=1174"},"modified":"2024-01-26T10:34:50","modified_gmt":"2024-01-26T10:34:50","slug":"fibonacci-trading","status":"publish","type":"page","link":"https:\/\/tradeafricahub.com\/index.php\/fibonacci-trading\/","title":{"rendered":"Fibonacci Trading"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>In this lesson, we will have a look at Fibonacci retracement numbers and the meaning behind them.<\/p>\n\n\n\n<p>Table of Contents<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fibonacci retracements\n<ul class=\"wp-block-list\">\n<li>Fibonacci extension<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Fibonacci retracements<\/h2>\n\n\n\n<p>The Fibonacci retracements are one of the most popular tools in technical analysis.&nbsp;They came up from the Fibonacci sequence of numbers.&nbsp;These are 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144\u2026&nbsp;If we divide two numbers next to each other from number three and above, we will gain a certain ratio we can use from Fibonacci retracement levels.&nbsp;Fibonacci retracement levels can then be used as horizontal support and resistance areas.&nbsp;And they are created by using a Fibonacci retracement tool which is available with pretty much every trading software and plotting it from key swing highs and swing lows.&nbsp;Once we plot those, we will see 23.6, 38.2, .50, 61.8, and 100% retracement numbers.<\/p>\n\n\n\n<p><strong>Why do these numbers work?&nbsp;<\/strong><\/p>\n\n\n\n<p>There is no magic behind that; it is simply because dozens of traders watch them, so we tend to see a reaction once the price reaches them.&nbsp;The most important ones are 38.2, 50 and 61.8% retracement levels.&nbsp;The 61.8% retracement is also called the golden ratio, and it is the most important one.&nbsp;A 50% retracement is not technically a Fibonacci number, but it is used because it works.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/academy.ftmo.com\/wp-content\/uploads\/2021\/04\/Screenshot-2021-04-01-at-13.10.51.png?ssl=1\" alt=\"\" class=\"wp-image-3117\"\/><\/figure>\n\n\n\n<p>As we can see on this chart, this is a daily EURUSD chart where we plotted a Fibonacci retracement tool on key swing highs and swing lows.&nbsp;&nbsp;Once the price starts its retracement, we could find a buying opportunity between 61,8 and 50% retracement.&nbsp;Another way of using Fibonacci numbers is with a Fibonacci extension.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fibonacci extension<\/h3>\n\n\n\n<p>This Fibonacci extension can predict future support and resistance levels in trending markets.&nbsp;This extension tool is pulled from major swing moves, and it is beneficial with instruments in price discovery.&nbsp;In other words, instruments that are beyond their previous all-time high.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/academy.ftmo.com\/wp-content\/uploads\/2021\/04\/Screenshot-2021-04-01-at-13.11.13.png?ssl=1\" alt=\"\" class=\"wp-image-3118\"\/><\/figure>\n\n\n\n<p>If we take this NASDAQ chart, we can see that the Fibonacci extension was pulled from the whole 2020 March crash. It could show us important levels&nbsp;of support and resistance in play after NASDAQ broke its all-time high.&nbsp;In conclusion, Fibonacci retracement and extension can be useful, but it is not the holy grail in trading.&nbsp;These levels oftentimes get front-run or broken through, so practising good risk management is always the key.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this lesson, we will have a look at Fibonacci retracement numbers and the meaning behind them. Table of Contents [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"class_list":["post-1174","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fibonacci Trading - TAH<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tradeafricahub.com\/index.php\/fibonacci-trading\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fibonacci Trading - TAH\" \/>\n<meta property=\"og:description\" content=\"In this lesson, we will have a look at Fibonacci retracement numbers and the meaning behind them. 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