Chart = Fibonacci Clusters
traders do swear by Fibonacci clusters. When there are more than two
Fibonacci key levels close to each other in one area, they form
One may notice two or more Fibonacci retracements or extensions or both in the same price level. Sometimes, Fibonacci key levels from different times frames may converge into the same zone and form Fibonacci clusters. Though they do provide vital support and resistance levels, there is nothing special about them in comparison to the normal key support and resistance levels. Nevertheless, one must take them into consideration because sometimes they are invisible to traders who do not pay attention to the Fibonacci key levels.
Generally, Fibonacci traders give a lot of consideration to those levels because valid Fibonacci trading signals do occur in those zones. A barrage of key levels is just a barrage, but a bullish or bearish momentum can still pierce through Fibonacci clusters.
The illusion that Fibonacci traders must overcome is the ideas that one has a convergence of multiple key levels or Fibonacci clusters therefore, the price will not break through them.
The advantages Of Fibonacci Clusters
1/ They help traders to manage trades from one key level to the next.
2/ Sometimes, reversal chart patterns or signal do appear in that region.
3/ One can look for divergence trading signals the region of Fibonacci clusters.
4/ A surge in trading volume when Fibonacci clusters are in place can provide clues about the next price move.
5/ Day traders can profit from the short term momentum that often derives from Fibonacci clusters.
6/ Fibonacci clusters are to a certain degree psychological price levels because they also divide the chart into two zones (bullish above and bearish below).
Fibonacci Clusters Tricks
Take a bullish position if a financial instrument quickly rises above the Fibonacci clusters after dipping below them in a down trend.
Take a bearish position after a bullish move or trend if the price quickly dips below the clusters after initially rising above them.
Best Fibonacci Clusters
My recommendation for finding more reliable Fibonacci clusters would be to prioritize the different times frame Fibonacci clusters. Due to the correlation between daily, hourly and ten-minute
charts, clusters that derive from those three times frame would provide more reliable trading signals.
The same is also true for Fibonacci clusters that are formed of weekly, four-hour and fifteen charts' Fibonacci key levels.
Furthermore, one will also give consideration to clusters that derive from monthly, daily and hourly charts or yearly, monthly and daily charts. Position traders will prefer those that derive from the quarterly, weekly and four-hour charts.
Fibonacci Clusters Trading Mistakes
To avoid Fibonacci clusters trading mistakes, one should always adopt a multi-talented trading mindset instead of a single minded trading style.
The best approach would be to align the following
1/ Market patterns.
2/ Market geometry strategies.
3/ Support and resistance trading.
4/ Trend line trading method.
5/ Different times frame trading strategies.
6/ And Fibonacci clusters.
The Fibonacci clusters are key levels that come together in one place. Instead of one Fibonacci level, one has two or more key levels. Indeed Fibonacci traders who use those levels also converge to those zones looking for trading opportunities. Traders who are not aware of those Fibonacci clusters are usually in for distasteful surprises. Therefore, a technical trader ought to know where are the Fibonacci clusters and be prepared to profit from them.