If you don't use this tool, you really need to. This tool beautifully outlines the vast majority of the various support and resistance zones you will see on a chart, even between the major horizontal zones! Works magic for short-term trading! Combine it with a Fib retracement tool too.
Hint:
- Start with logarithmic scale on your chart. If that doesn't work, try arithmetic
- The default values in this tool include 0.75 and 0.25. Why? I don't know. Go ahead and replace these values with the typical 0.786 and 0.236 values.
If you find that the price is highly active below or above the default line with the lowest Fibonacci value (0.236), you can add in further Fib values by re-configuring any lines that are of less importance. e.g. if the 0.618 line isn't all that informative, change it to a lower Fib value, such as 0.146, 0.0898, 0.0561, etc. These are still remarkably accurate! For example, on this chart, I'm using 0.146 and 0.0561.
Don't be afraid to move the start and end points of the tool in order to fit the chart you are working on. We're not trying to prove the accuracy of this tool and its standard methodology, we're trying to find more accurate predictions! If it's a little off, then move it till it looks good!
Which charts are you spending a lot of time on? Does this tool help?
Please share strong examples of where this works and does not work.
Cheers!
- B
**This is not advice to trade.
Hint:
- Start with logarithmic scale on your chart. If that doesn't work, try arithmetic
- The default values in this tool include 0.75 and 0.25. Why? I don't know. Go ahead and replace these values with the typical 0.786 and 0.236 values.
If you find that the price is highly active below or above the default line with the lowest Fibonacci value (0.236), you can add in further Fib values by re-configuring any lines that are of less importance. e.g. if the 0.618 line isn't all that informative, change it to a lower Fib value, such as 0.146, 0.0898, 0.0561, etc. These are still remarkably accurate! For example, on this chart, I'm using 0.146 and 0.0561.
Don't be afraid to move the start and end points of the tool in order to fit the chart you are working on. We're not trying to prove the accuracy of this tool and its standard methodology, we're trying to find more accurate predictions! If it's a little off, then move it till it looks good!
Which charts are you spending a lot of time on? Does this tool help?
Please share strong examples of where this works and does not work.
Cheers!
- B
**This is not advice to trade.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.