Support and Resistance Levels
To start your education on technical analysis, let's begin with the basics: support and resistance!
- Fibonacci Trading
- How to Use Fibonacci Retracement to Enter a Trade
- Fibonacci Retracements are NOT Foolproof
- How to Use Fibonacci Retracement with Support and Resistance
- How to Use Fibonacci Retracement with Trend Lines
- How to Use Fibonacci Retracement with Japanese Candlesticks
- Using Fibonacci Extensions to know when to take Profit
- Using Fibonacci Extensions to determine the stop to lose Less Money
- Summary: Fibonacci Trading
Popular Chart Indicators
- How to Use Bollinger Bands?
- HOW TO USE THE MACD INDICATOR
- How to Use Parabolic SAR
- How to Use the Stochastic Indicator
- How to Use RSI (Relative Strength Index)
- How to Use ADX (Average Directional Index)
- Ichimoku Kinko Hyo
- Trading with Multiple Chart Indicators
- What is the Best Technical Indicator in Forex?
- Summary: Popular Chart Indicators
How to Use Fibonacci Retracement with Trend Lines
Just like Japanese Candlesticks, Trend lines are also used along with a Fibonacci retracement tool to understand the FX market. We know the fact that the Fibonacci retracement levels tells about the retraced values of a price and helps a trader in getting worthy levels when trading is happening, so by using Trend lines, one can get the beat and can earn profits. The lines give the information about downtrend and uptrend of the market and when the FX charts show a horizontal and diagonal resistance or support level together, it means that other traders are focusing on those level as well. Trend lines use the present Forex data, to predict the movement supposed to happen at FX.
Trend lines vary from one trader to others, it is a subjective kind of matter to know the trend line pattern of other
traders. But the presence of these lines only is enough to know that trade is happening. Now when a Forex trader knows that the market is churning in terms of trade, he can get indulge in the process to get the profits. Fibonacci Retracement tool can help in getting the worthy FX entry points. Just by getting the difference between an FX high and low and relevant ratios by the tool and then combining it with the trend analysis, a trader can drive his trading car towards the profitable directions. The combination of these two tools helps a trader in many ways and help in sailing his trade boat in on the FX Ocean.