Wed. Jun 7th, 2023

Fxtriangle | Market analysis | Managed trading

Fxtriangle will make Fx trading look easy.

How to use Fibonacci Retracement with Japanese Candlesticks?

1 min read

We get full-scale candlesticks when we combine Fibonacci retracement tool with candlestick patterns. Once you will be able to guess the time buying and selling are worn out, it will help you to understand when the price will be continually trending.

Let us explain it with a 1-hour EUR/USD chart.

The pair is in a downtrend since the last week and the move has halted. With the help of the Fibonacci retracement get can show up on this downtrend.

In the chart, the Swing High is set at 1.3364 on March 3 and the Swing Low at 1.2523 on March 6.

On March 9, the EUR/USD has heightened from its closing price. The 50.0% Fibonacci level when was gripped for some time, buyers took the pair higher. Wait and look for if the 61.8% Fibonacci level holds or not. As the last candle was quite bullish, the price may keep blooming.

On the 61.8% Fibonacci retracement level, a long legged doji is formed. You can make some good profit if you have beaten the doji right after it was formed. Also, the price was obstructed before heading straight down.

The red candles indicate that the buyers somehow allowed taking over. Now the price returned to the Swing Low, a move of about 500 pips.

Fibonacci sticks help to signal if a Fibonacci retracement level will hold or not.

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.