The Fib Retracement Tool is a powerful tool on TradeLocker that helps identify potential levels of support and resistance based on the Fibonacci ratios.
The Fib Retracement Tool offers traders a systematic approach to market analysis. By using predefined Fibonacci ratios, it quickly pinpoints probable reversal points. This is invaluable for both trend-following and counter-trend strategies.
It’s also commonly used in conjunction with other indicators to confirm the strength of a potential support or resistance level. Overall, this tool simplifies the process of identifying high-probability trade setups, enhancing decision-making.
Here is how to use it:
- Locate the toolbar that contains the drawing tools, it is positioned on the left side of the chart.
- The Fib Retracement Tool icon is represented by a series of horizontal lines, click on it to activate it.
- Identify a significant swing high and swing low in the price movement that you want to analyze.
- Click the left mouse button at the swing low and drag the cursor to the swing high and then click the mouse button again.
You can also edit, add, remove or adjust the Fib Retracement Tool to your preferences. The common icon is 23.6% to 8.2% to 50% to 61.8% and 78.6%.
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