In this short article, you will learn the best Fibonacci extension and retracement levels for trading Forex and Gold.
I will share with you correct settings for Fibonacci tools and show you how to use & draw Fibonacci's properly on TradingView.
Best Fibonacci Retracement Levels
First, let's discuss Fibonacci retracement levels.
Here are the default settings for Fibonacci retracement tool on TradingView.
We will need to modify that a bit.
We should keep 0; 0,382; 0,5; 0,618; 0,786; 1 levels
0,382; 0,5; 0,618; 0,786 will be the best retracement levels for Forex & Gold trading.
How to Draw Fibonacci Retracement Levels Properly
In order to draw fib.retracement levels properly, you should correctly identify a price action leg.
You should underline that from its lowest low to its highest high, taking into consideration the wicks of the candlesticks.
Fibonacci Retracement of a bullish price action leg will be applied from its low to its high.
1.0 Fibonacci level should lie on the lowest low, 0 - on the highest high.
Fibonacci Retracement of a bearish price action leg will be applied from its high to its low.
Best Fibonacci Extension Levels
Above, you can find default Fib.extension settings on TradingView.
We will need to remove all the retracement levels; 2,618; 3,618; 4,236 and add 1,272; 1,414 levels.
1,272; 1,414; 1,618 will be the best Fibonacci Extension levels for trading Gold and Forex.
How to Draw Fibonacci Extension Levels Properly
Start with correct identification of a price action leg.
Draw the Fib.Extension levels of a bearish price movement from its high to its low.
Draw the Fib.Extension levels of a bullish price movement from its low to its high.
I apply the fibonacci levels that we discussed for more than 9 years.
They proved its efficiency and strength in trading different financial markets. Learn to combine Fibonacci levels with other technical analysis tools to make nice money in trading.
