Trade Forex Trading

How Do I Draw Fibo Retracement Areas on a Downward Trend?

How Do You Draw Fibo Retracement Areas on a Downward Trend?

Forex traders use Fibonacci retracement tool to determine where to place a sell trade in a downward trend.

How Do You Draw Fibo Retracement on a Downward Trend?

To Draw the Fibonacci retracement indicator tool the first thing to know is that this Fibo Retracement indicator is always drawn in direction of the trend.

If the trend is downward - Fib Retracement indicator tool is plotted downwards.

How Do You Draw Fibo Retracement in a Downward Trend?

In the trading example below of how to plot the Fibonacci Retracement tool, the trend is moving down between chart point 1 and chart point 2, and then after chart point 2 the price then retraces up to 38.2% Fibonacci retracement area then it continues moving down-wards in the original downwards trend. Note that this Fibo retracement indicator is plotted from chart point 1 to chart point 2 in direction of the Trend (Downward Direction).

How to Draw Fibo Retracement Areas on a Downward Trend - How Do I Draw Fib Retracement Areas on a Downward Trend?

How Do I Draw Fibo Retracement on a Downward Trend

How Do You Draw Fib Retracement in a Downwards Trend?

The above Fibonacci Retracement analysis trading example trading setup is a Fibonacci Retracement setup where price retraces immediately after getting to the 38.2 % Fibo Retracement Level.

In this Fibo Retracement analysis example the price pullback of price reached 38.2 % Fibonacci retracement area and did not get to 50.0% Fibonacci retracement level. It's always good for traders to use the 38.2 % Fibonacci retracement area because most times the price retracement does not always get to 50.0% Fib retracement level.

This 38.2% Fibonacci Retracement area provided a lot of resistance for the price pullback, this was the best place for one to set a sell limit order as a trend quickly went down after retracing to this price pullback level.

Guide of How Do I Draw Fib Indicator on Charts

How Do You Draw Fib Retracement Areas on a Downward Trend?

Guide of How Do I Draw Fib Indicator on Charts

How Do I Draw Fibo Retracement Areas on a Downward Trend?