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Fibonacci Trick

 4. Price Action Trading - Fibonacci Trick.

  • If market is in a trend, then we can draw Fibonacci Retracement of recent high and low of the market price.
  • We can get three major levels using the Fib tool which are 0.5, 0.6, 0.38.
  • We can check whether price is respecting the Fibonacci levels or not. If it respects and trading above 0.5 level, then we can go for long positions.

  


  • If market opens above the 0.5 level and sustains above it then, we can take a long position. 
As we can see in the below image that the price is breaking the recent trendline and taking a re-test for up move.





  • If it is breaking the trend line and taking re-test then we can go long as market is trading above 0.5 level and very near to demand zone. 
Hope the above information is helpful and happy trading :)




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