Check-list Before Considering A 38.2% Fibonacci Retracement
B / Did the 38.2% Fibonacci retracement stop at a key level?
C/ Was it under a low trading volume?
D/ Know also that a three-move price-action to that 38.8% Fibonacci retracement is also a good sign.
E/ Where is the price headed? (understand that no financial instrument goes up or down for no
reasons, it is always headed to a specific price target level. Know that target and see if that is
a high probability 38.2% Fibonacci retracement level.
F/ Check the market patterns because they determine the appropriate trading strategy one must
deploy. Do not repeat any of the seven biggest trading mistakes.
G/ Is it a new trend starting after the prior trend? Take into consideration the prior financial
markets dominant force.
After all, remember to adhere to the trading drill and triangle. And always use a demo trading account to work on your ability to trade the 38.2% Fibonacci retracement like a pro.
Trading the 38.2% Fibonacci retracement is similar to trading support or resistance level.
Draw the key level or that 38.2% Fibonacci retracement, and give priority to bullish signals above it
and bearish ones below. Never assume anything, but follow the trading drill by implementing different times frame trading method to control the risk. Yes, you will be smiling if you catch a valid 38.2% Fibonacci retracement trading signal. Won't you?
Make sure you get it right because the 38.2% Fibonacci retracement does not guarantee free cash to those who do not know how to trade it.
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