Is it better to use more than one Fib Retracement

December 28th, 2021, 09:49 PM

This is what I am experimenting with right now. Using the green fib tool for longs and the red fib for shorts.

When it comes to trading consolidation, it seems to me it doesn't matter which "direction" you trade as consolidation is non-directional price movement. However If looking for opportunities to short, to me it would make more sense to draw the fib tool differently as depicted.

Is this common or is it unnessessary?

December 29th, 2021, 10:42 PM

If I were going to short that , it would be at the top of the last long extended range bar or candle down . There will be a little zone there where the market broke , sellers should be there . If price trades above that area , a retest of the high becomes more likely . This may not have answered your question . The book says , run the ruler from swing low to high , short at the 50 % fib . stop just above the the 61.8 . targets 1# 121 % of the swing , target 2# 161 % of the swing . hope it helps

December 30th, 2021, 04:01 AM

Fib tool is better to use for measuring the retrace or extend degree, it is not suit for determine the direction of the trend, so for your question, the answer is unnecessary.

Is it better to use more than one Fib Retracement

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Is it better to use more than one Fib Retracement