Educational guide on using Fibonacci method. Free Forex Fibonacci tutorial
5. Fibonacci method can be double strengthened by applying two or more retracements at onceAlthough Fibonacci method has its defined rules, many traders worldwide are using their own combined styles and approaches, not to mention set different objectives for every particular trade. Considering that some Fibonacci traders might be more comfortable with plotting two or more Fibonacci retracements to see where interests of majority of traders are merging.
And so, merging retracement levels would show more potential to become the U-turn points for the market. Same idea could also be used for setting profit targets. Here traders should closely watch the market behavior and tighten their protective profitable stops when the price gets closer to the initial profit target zone. The other option is simply to opt for the lowest extension level and trade safe.
To your trading success!
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