Using Fib lines to display high probablity entries and exits
I have found that Fibb Numbers can be highly effective and does not lag like an indicator.
These numbers can be used to visually validate pullback and bounce zones, predict the closing price, validate a healthy trend, and show areas to take profit. using these numbers will allow the trader to visually understand how price may move. It is key to wait to validation of the level the market price comes to test. These numbers can also be used in tandem with indicators and the Gann box to further validate what is happening. It is key to use the on a time frame higher than 5 minutes to gain a view of the overall trend for the day or week. I prefer using the 15 minute time frame to view and the 5 minute time tame to validate. These levels can be used on areas of previous price moves to guide a trader before the move even happens. Using the lines allows you to really hone in on what price is showing you, where you are wrong and need to get out of way, and when to add to a winning position. Use these concepts with an institutional investors mindset. When a market is trending pullback occur from retail traders emotions causing them to sell early out of there winning positions. On these dips institutions add to a winning position because they have an edge and sense of calmness and validation provided by the fibbonacci levels. An extreamley important aspect of profitability is keeping a consistent risk to reward, cutting losers short, and letting winners to run. It is key to follow what the number are showing you and be patient for the price to validate your theory. Than an entry is taken when it is most clear that the trend is going to continue. If you are in a winning position start to think of ways to plot the next line array. use the previous legs pullback to project an upper array of numbers that may provide confluence. Volume coming into the market at these levels is also very tell tale sign this move may have institutional support. Trust the number and their properties. Avoid trading with your ego trying to predict a direction, bias, or outcome. Simply observe a trending market and let the Fibs do the rest of the talking.
These numbers can be used to visually validate pullback and bounce zones, predict the closing price, validate a healthy trend, and show areas to take profit. using these numbers will allow the trader to visually understand how price may move. It is key to wait to validation of the level the market price comes to test. These numbers can also be used in tandem with indicators and the Gann box to further validate what is happening. It is key to use the on a time frame higher than 5 minutes to gain a view of the overall trend for the day or week. I prefer using the 15 minute time frame to view and the 5 minute time tame to validate. These levels can be used on areas of previous price moves to guide a trader before the move even happens. Using the lines allows you to really hone in on what price is showing you, where you are wrong and need to get out of way, and when to add to a winning position. Use these concepts with an institutional investors mindset. When a market is trending pullback occur from retail traders emotions causing them to sell early out of there winning positions. On these dips institutions add to a winning position because they have an edge and sense of calmness and validation provided by the fibbonacci levels. An extreamley important aspect of profitability is keeping a consistent risk to reward, cutting losers short, and letting winners to run. It is key to follow what the number are showing you and be patient for the price to validate your theory. Than an entry is taken when it is most clear that the trend is going to continue. If you are in a winning position start to think of ways to plot the next line array. use the previous legs pullback to project an upper array of numbers that may provide confluence. Volume coming into the market at these levels is also very tell tale sign this move may have institutional support. Trust the number and their properties. Avoid trading with your ego trying to predict a direction, bias, or outcome. Simply observe a trending market and let the Fibs do the rest of the talking.
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