Sun. Oct 24th, 2021

Fxtriangle | Market analysis | Managed trading

Fxtriangle will make Fx trading look easy.

How to use Fibonacci Extensions to know when to take profit?

1 min read

We will be using Fibonacci to find targets. Let us discuss this with an uptrend. The idea in an uptrend is to grip the profits on a long trade at a Fibonacci Price Extension Level.

In order to make it work, you need to click the mouse thrice. First, click on the significant Swing Low, next drag the cursor and click on the current Swing High. Lastly, drag your cursor down again and next click on one of the retracement levels. After that, you will see the price extension levels displaying the ratio and parallel price levels.

To carry on with the subject, we will continue with the USD/CHF chart.

From the chart you can see that the price rose above the former Swing High. The 50.0% Fibonacci level bears strong as support. Followed by three tests, the pair reopens its uptrend.

Let us now use Fibonacci extension tool to justify the matter, that is, to make some good profit.

When the retracement swing low turns out:

  1. Price reformed to the 61.8% level aligning with the previous Swing High
  2. Next, it withdrew to the 38.2% level and found support
  3. Price again reformed and found resistance at 100% level
  4. After two days, the price again reformed before looking for resistance at 161.8% level

From the example, you can well assume that through these levels, that is, 61.8%, 100% and 161.8%, we can pull off some great profits.

Leave a Reply

Forex trading and any instruments related to Foreign Exchange Market are Speculative and carry substantial risk of loss of either partial equity or the entire deposit amount. Leverage adds up to the risk, before considering to invest in this venture, you should first consider your financial position and may seek the help of an independent financial advisor. FXtriangle dis-recommends the usage of loan instruments to trade in this market as it can hamper financial position. Please do not invest the money that you cannot afford to lose. FXtriangle provides all its services throughout the Globe Excluding (Nigeria, British Virgin Island & the Islamic Republic of Iran) and also provides limited service in some jurisdictions where investment in Overseas markets / Fx Exchanges are prohibited by Law If you are not sure to contact us before using any of our services. FXtriangle acts as an Independent Corporate Financial Advisor and connects you to various overseas exchanges and cannot be held liable for any financial damage occurring through their side. All of our partnered institutions are regulated in various jurisdictions.FXtriangle conducts an independent background check before partnering with any institutions to fulfill your investment objectives smoothly. The usage of our Business name, Logo or any trademark in any financial forum, website, review website, complaint arena, Billboards without our written permission will attract lawsuits.