Fibonacci Retracement finder is a forex trading technical indicator. It is an extremely well developed simple indicator. This technical indicator has been tested well and it has produced an accuracy of over 80%. For most successful traders know that 80% accuracy is not an easy task to archive. Traders using Fibonacci Retracement finder indicator with a 1:2 risk-reward ratio will still be profitable even when accuracy decreases to 50%. The benefit of this technical indicator is that it can be used on any time frame. The key to success with this indicator is discipline.
When you install Fibonacci Retracement Finder indicator in your trading platform, your chart should look like this:
Fibonacci Retracement Finder consists of histograms which move in the positive and negative territory. When the histogram is in positive territory, the market is up trending and when the histogram is in negative territory, the market is down trending. However, you should not simply trade on this concept. You should know the concept of the market trend. You should be buying when the histogram is in positive territory and the market is up trending. Similarly, when the histogram is in negative territory and the market is down trending, you should be selling.
Go To; Trading Systems
Buying Conditions Using Retracement Finder.
- The market should be up trending.
- The market should be rising from recent support.
- The Retracement Filter indicator should be positive.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the Retracement filter indicator falls into the negative territory.
Don’t Miss; Interactive Brokers List Pick
Selling Conditions Using Retracement Finder.
- The market should be down trending.
- The market should be falling from recent resistance.
- The Retracement Filter indicator should be negative.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the Retracement filter indicator rises to the positive territory.
Download Free Forex Retracement Finder Indicator
Our community works well with InstaForex. Are you looking for a demo or real account? We recommend InstaForex. Currently, they offer up to $1000 no deposit bonus; That’s right! You can trade real funds without depositing them, see the definition below;