Fibonacci for Trading, Gann & Pivot
You can use so-called Fibonacci retracements to identify potential resistances, support, and turning points of a course. These help you find the optimal market entry or exit for your trade, maximizing profits and minimizing losses.
Fibonacci Trading Level
It is assumed that the price, even if it moves in the trend direction, first bounces at the calculated Fibonacci level and falls to the next level. Thus, a trader can trade between levels and make profits without reliant on the development of the overall trend, which is why this method is particularly recommended for short- to medium-term strategies. If overall prices fall short of the last support, this may indicate a turnaround. Conversely, the end of a down trend can be announced as soon as the top level is exceeded.
Fibonacci retracements for short and medium term trades
Complementing its strategy with retracements makes sense especially for short- and medium-term trades. Even with sideways prices, profits can be made by repeatedly trading the distance between support and resistance. Alternatively, you can divide your chart with Gann lines or pivot points and use this information for your trading.