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Improving Fibonacci, Fractals, CCI, RSI, 
Pitchfork Tool, Volume, Gap And Scalping Trading

Fibonacci, fractals, RSI, CCI, Pitchfork Tool, Volume, Gap And Scalping Trading Tips And Tricks 

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Sweet Spot Fibonacci Trading

Sweet Spot Fibonacci 

The sweet spot Fibonacci trading zone is the zone between the 50% and 61.8% Fibonacci retracements. To use the sweet spot Fibonacci trading strategy there should be two things:
1/ prior bullish or bearish trend or price-action.
2/ price starts changing direction.

One will draw both the 50% and 61.8% Fibonacci retracement levels. Understand that the bullish zone is above the sweet spot Fibonacci zone and bearish zone below it.

If the price is in the bullish zone, and it starts declining, the bullish traders will do everything to keep it in their zone. In other words, the price has more chance to rise in the bullish zone, but any time, it tries to go into the bearish zone from the bullish zone the bullish traders will double their effort to stop it at the 61.8% Fibonacci retracement level.

On the other hand, if the price is in the bearish zone, and it begins to rise, bearish traders will do their best to stop it. Moreover, they will use all their resources to block it at the 50% Fibonacci retracement level.

Sweet Spot Bullish Fibonacci Strategy

If a financial instrument is declining in the bullish trading zone, and reaches the 61.8% level, one will look for a bullish trading set-up and implement a top-down trading method to control the risk.

Sweet Spot Bearish Fibonacci Trading Strategy

Look for a bearish trading set-up on or near the 50% Fibonacci retracement level if the financial instrument is rising from the bearish zone up to the 50% Fib level.
To control the risk whether one is day trading or swing trading, one will apply a top-down trading method.

The sweet spot Fibonacci trading strategy is a mind game trading strategy because both bulls and bears are doing everything to keep the price in their zone.