We can use Fibonacci retracements as guidelines to determine where price action will move. Know these Fibonacci levels ahead of time and see how accurate they are in your trading. Our Auto Fibonacci Indicator adjusts to the price action and will show potential support and resistance. Trade the Fibonacci lines and levels each day and see how the reversals happen in the significant reversal areas.
For precision and accuracy, Fibonacci retracements move with the price action. The Fib indicator has two levels that other Fibonacci indicators don’t have. A daily support line and another support line for the opening price. I learned these major areas of support from a trading firm where I obtained my education over eighteen years ago. Major trading firms use these Fibonacci lines as support levels because they are very accurate.
The online video course with the software teaches you how to trade Fibonacci retracements. This indicator is for NinjaTrader 8 platform and is available for instant download after purchase.
Fibonacci numbers are a sequence of numbers in which each number is the sum of the previous two numbers, starting with 0 and 1. In technical analysis of financial markets, traders often use Fibonacci numbers and ratios derived from them as tools to identify key levels of support and resistance in price charts, as well as to help identify potential entry and exit points for trades. Some of the potential benefits of using Fibonacci numbers in trading include:
Identifying key levels of support and resistance: By identifying key Fibonacci levels on a price chart, traders can potentially find areas where the price may experience resistance or find support, which can be used to inform trade decisions.
Identifying potential entry and exit points: Traders may use Fibonacci levels to identify potential entry points for trades, as well as to set profit targets or stop-loss orders.
Improving risk management: By using Fibonacci levels to set take-profit and stop-loss orders, traders may be able to better manage their risk on a trade.
Enhancing the effectiveness of other trading tools: Some traders find that using Fibonacci numbers in conjunction with other technical indicators or analysis techniques can help improve the accuracy of their trade decisions.
Traders of crude oil can use Fibonacci retracement levels to help predict potential support and resistance levels for the commodity’s price. These levels are based on mathematical ratios and are automatically plotted on a chart, making it easy for traders to incorporate them into their analysis.
Fibonacci retracement levels are created by drawing a line between a price low and a price high on a chart and then dividing the vertical distance by key Fibonacci ratios. These ratios, which include 23.6%, 38.2%, 50%, 61.8%, and 100%, are commonly used to identify potential support and resistance levels in financial markets.
By using Fibonacci retracement levels, traders can get a sense of where the price of crude oil is likely to find support or resistance as it moves up or down. This can be especially useful for day traders, who need to make quick decisions about their trades and may not have the time to manually plot these levels on their charts.
The Fibonacci key ratio consists of 61.8% and 78.6%, which are considered key reversal areas. In addition, the 23.6% and 38.2% Fibonacci retracement levels are important support areas. As shown in the chart, the price of crude oil reached the 100% Fibonacci level and then began to decline. We sold our position at the 23.6% Fibonacci level and the price fell to our target at the 78.6% Fibonacci level, resulting in a significant profit.
This chart shows the trading of the ES. The price initially increased to the daily high but then remained stable. Short entry would be below the 100% Fibonacci level as the price decreased. When using Fibonacci levels in trading, it is common for the price to move between different levels.
Your target would be the 50.0 Fibonacci level, which it hit. These are patterns that repeat each day and to make the trade manageable you would employe an ATM strategy to determine the contract size, stops, and targets for your entry. This strategy is simple to implement and all traders should consider using it in their trading.
Learn the art of leveraging Fibonacci retracement levels to enhance your electronic trading prowess. Immerse yourself in our online videos and learn to trade the software meticulously designed to equip you with the essential skills and knowledge required to execute trades with finesse. Learn the important levels that the price action can and will reverse at. Take advantage of these high-percentage reversal areas and see how powerful and accurate they are.
This indicator automatically draws Fibonacci retracement levels to help identify potential support and resistance levels in the market. These levels are based on Fibonacci numbers, which are believed to predict where the price is likely to go. This tool eliminates the need to manually draw the levels and simplifies the process of using them in electronic trading.
On the chart, our Fib Lines are clearly labeled with Daily Support and Daily Open for all significant market movements. Additionally, there are five automatic Fibonacci retracement levels that repeat daily.
In technical analysis, Fibonacci extension levels and ratios are used to identify potential support and resistance levels in the market. These levels are often generated using software and can help traders predict where the price of a security may move after a pullback. Fibonacci extension levels can be used to set profit targets and stop-loss orders, and are commonly used in the trading of futures. Essentially, they provide insight into how far the price of a security may potentially move based on past market behavior.
We shorted the NQ just above the 38.2 Fibonacci level and targeted the daily Fibonacci lines, which is a major support level that we reached.
Trading with an Automatic Fibonacci indicator is a tool every trader should have in their online trading system. Fibonacci numbers are very reliable in drawing levels on your trading chart and using them in your trading strategy. Fibonacci retracements level makes online trading less stressful and more successful.
Another example of shorting the Fibonacci level and targeting the 61.8 Fib line. The lines are the horizontal lines of the Fib levels.
Furthermore, the Fibonacci retracement is accurate to the tick in Ninjatrader and moves with the price action. This gives the trader an edge in knowing where the price action can go and the technical analysis to have more successful trades using Fibonacci numbers. We go short @ the 78.6% Fibonacci Level and target the 61.8% Fibonacci area, and targets were hit. Then in the chart below, we shorted the 50% Fibonacci area, and are targets were 61.8 for a nice trade.
An example of shorting at a Fibonacci level and targeting the 61.8% Fib line is shown below. The horizontal lines in the chart represent the Fibonacci levels.
Want the precise edge in trading? Want to know where the price is going before it gets there? That’s all available in the Trading123 Automatic Fibonacci indicator, precise Fibonacci lines that move with the market and the price action. So that means no drawing the Fib lines on your own. Below we have a breakout of the 78.6 Fib line and up to the highs.
Fibonacci lines are plotted right on the chart, and you will learn where the major reversals happen and avoid the chop. You will often see a quick move to the upside when the price hits these major Fibonacci retracement levels. And target the next Fibonacci level, which is all explained in the educational material with the software.
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