Tuesday, December 9, 2014

Crudeoil positional analysis 09.12.14 Update I

Most trading platform will be able to help you to draw the levels easily.

There are a lot of traders who are having problems with trading the Fibonacci as they do not always find the price respecting the levels. This is because those are not the Fibonacci setup and therefore do not display the patterns as discussed above.

Trading setup:

Time frame: all (preferably 5min or 15min to doing day-trading).
Currency pairs: any.


Step 1: Draw a Fibonacci retracement level
Step 2: Check if there is any support on the 0.328, 0.5 or 0.618 levels
Step 3: If there is no support formed on any of these levels, it is not a fibonacci pattern. Repeat step 1 until you can find one. If there is support formed on any of the levels in step 2, you can then look for opportunity to get into a trade
Step 4: then pick the extension level as your exit position, usually use 1.618 levels