Silver SetUp 12-03-2024
Fibonacci Confluence.
Here's a simplified example of how the Fibonacci Confluence Trading Strategy might be applied:
1. Identify a significant swing high and swing low in the price action of a financial instrument.
2. Draw Fibonacci retracement levels from the swing high to the swing low or vice versa.
3. Look for confluence points where Fibonacci levels align with other technical indicators. For instance, a 61.8% Fibonacci retracement level might coincide with a key horizontal support/resistance level or a trendline drawn from previous price action.
4. Confirm the confluence with additional technical analysis tools, such as momentum indicators or candlestick patterns.
5. Once a confluence point is identified, consider taking a trade in the direction indicated by the confluence, with appropriate risk management strategies in place.
Fibonacci Confluence.
Here's a simplified example of how the Fibonacci Confluence Trading Strategy might be applied:
1. Identify a significant swing high and swing low in the price action of a financial instrument.
2. Draw Fibonacci retracement levels from the swing high to the swing low or vice versa.
3. Look for confluence points where Fibonacci levels align with other technical indicators. For instance, a 61.8% Fibonacci retracement level might coincide with a key horizontal support/resistance level or a trendline drawn from previous price action.
4. Confirm the confluence with additional technical analysis tools, such as momentum indicators or candlestick patterns.
5. Once a confluence point is identified, consider taking a trade in the direction indicated by the confluence, with appropriate risk management strategies in place.