Commodity Retracement Strategy & Commodity Trading Retracement Trading for Downward Commodity Trend

How Do You Draw Commodity Trading Fib Retracement for Commodity Trading Downtrend?

The fibonacci retracement indicator is placed on a commodity chart in an downward commodity trending market and this Commodity Trading Fibonacci Retracement indicator then calculates the retracement levels for the commodity downward trend on the commodity charts. Fibonacci retracement levels indicator is used by many traders as a commodity trading retracement trading indicator.

In the Commodity Trading Retracement Strategy example illustrated and shown below commodities trading market is moving down between chart point 1 & chart point 2, then after chart point 2 the commodity price then retraces upto 38.20% retracement level then it continues moving downwards in the original downward trend. Note that this commodity trading Fibonacci retracement technical indicator is plotted from point 1 to point 2 in the direction of the Commodity trend (Downwards Direction).

Because we know this is just a retracement based on the commodity chart commodity trend we put a sell order at 38.2% Fibonacci retracement level and a stop loss just above 61.8% Fibonacci retracement level.

If you had put a sell order at the 38.2% Fibonacci retracement level as shown on the commodity trade below you would have made a lot of pips afterwards after the price reached the 38.2% Fibonacci retracement level and then resumed the downward commodities trend.

In this trade the retracement of commodity price reached 38.20% Fibo retracement level & did not get to 50.0% Fibo retracement level. It is always good to use 38.20% Fibo retracement level because most times the commodity price retracement does not always get to 50.0% Fibo retracement level.

How to Trade Commodity Price Retracement on Downwards Commodity Trend - Commodity Fib Retracement Levels on Commodities Trading Chart

Explanation for the Above Commodities Trading Fib Retracement Strategy Examples

The above Commodity Trading Fibonacci Retracement Strategy example is a commodity retracement setup where the price retraces immediately after touching the 38.20% Commodities Trading Chart Fib Retracement Level.

This Commodity Trading Fibonacci Retracement level provided a lot of resistance for the commodity price retracement, this was the best place for a trader to place a sell limit pending order as commodities trading market quickly moved down after hitting this 38.2% Fibonacci retracement level.