Fibonacci – Forex trading strategies
I would like to show you guys on fibonacci. In the above chart, eur aud h4.
We can see the fibonacci values but not see where is it drawn from. The high point and the low point.
In such scenario, we forgo to play the fibonacci and not draw it in this chart as there seem no obvious points for us to place our fibonacci.
However, if we zoom out –
Here we can see a better and clearer picture of where our fibonacci values – high / low point should be drawn.
Pls note that this is still the h4 time frame.
If we zoom out to the Daily time frame –
There you go. Perfect and easy to point out and to draw it.
What i wanted to say is that, Fibonacci may not be only placed at smaller time frame.
It can also be drawn on larger time frames.
Fibonacci levels on larger time frame are even stronger and more reliable.
And they give a Clearer overall picture of where the possible trend is heading to.
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