Resolved Question
How can i identify the uptrend and downtrend of the daily chart by using fibonaci support and resistance.
which fibonacci level i must look before i take as a support level
over 2 years ago
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Fibonacci is NOT for determining trend, whoever told you that was grossly mistaken. They are for retracements within a trend for for price projections of a trend continuation. You need to ALREADY have HAD a trend to use Fibonacci.
In you want to determine the trend on the daily chart you need to use a trending or lagging indicator like MACD or Moving Averages. For example, plot a 200 day exponential moving average on a chart that is one color when it is moving up and another when it is moving down. Then you take your trend from the color change. There are several tools to use for trend but Fibonacci is NOT one of them.
over 2 years ago
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Answers (3)
The major fib lebels are 38.2, 50.0, and 61.8. Fibs aren't really used to identify an overall trend, they're used as areas of interest when a trend retraces. If you want to identify a trend you can use trend lines or the 20, 50, 200 simple moving averages. 20 on top, 50 in the middle and 200 at the bottom would indicate an uptrend. The reverers, 200 on top, 50 in the middle, and 20 at the bottom would indicate a downtrend.
over 2 years ago
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The Fibonacci method can be used to determine the retracement and extension levels of prices. To identify trends in the daily chart or any time frame, you can simply use trend lines. A pair is on an uptrend if its successive lows are higher than the previous ones. Conversely, a pair is on a downtrend if its successive highs are lower than the previous highs.
over 2 years ago
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Fibonacci retracement levels aren't used to determine the trend. To determine the trend you can just eyeball it or start drawing your trend lines. Fibonacci retracement levels are mainly used to determine where price could retrace back to before continuing with its overall trend. It's used as a tool to predict where currency traders could start jumping in and start buying/selling the pair again. In my experience, the 61.8% Fib level is very strong, especially if it lines up with previous support/resistance levels.
over 2 years ago
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ForexEA
Here are my advices:
Read at http://pipburner.com/trending-and-r... - Trending Market and Ranging Market: How to discern one from another – Part 1
Read at http://pipburner.com/trending-and-r... - Trending and Ranging Markets – Part 2
Or use free MT4 plugin called FX Pulse. It has built-in trend detector for every time frame. Download this forex tool at http://pipburner.com/free-forex-tra...
22 days ago
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