I Talked in previous article about the first part of the trading using Fibonacci you can read it through this link
How To Draw Fibonacci
Firstly : Determining (swing high) : It's highest point on the chart during period that the price could capsizes to bearish
Secondly : Determining (swing low) : It's lowest point on the chart during period that the price could reverse to bullish
Swing High & Swing Low
In order to Extract the swing points and drawing Fibonacci ratios on the chart in Metatrader program Firstly you must add ZigZag indicator by clicking on insert then indicators then custom then ZigZag
Please Notice that the ZigZag line will be red on the chart and it shows to us highest swing point ,as well lowest swing point during a period as below in picture
ZigZag Indicator
How To Extract The Swing Points from Japanese Candlesticks
Swing Low : Is lowest swing point that the price will convert from bearish to bullish ,swing low is a candle has low shadow reaches to lowest areas on it right a candle and on it left a candle has low shadows but these shadows higher than the shadows of middle candle
Swing High : Is highest swing point that the price will convert from bullish to bearish ,swing high is a candle has high shadow reaches to highest areas on it right a candle and on it left a candle has high shadows but these shadows lower than the shadows of middle candle
How To Draw Fibonacci Line
If the trend continues in rising ,you should draw Fibonacci line from under of swing low to above of swing high , and here will show to you Fibonacci numbers from the high starting from %0 rate tends to the bottom until %100 rate
If the trend continues in falling ,you should draw Fibonacci line from above of swing high to under of swing low, and here will show to you Fibonacci numbers from the low starting from %0 rate tends to the top until %100 rate
Fibonacci Kinds
You can add Fibonacci indicator on the chart by clicking insert then Fibonacci then retracement
: There're 3 kinds of Fibonacci
Fibonacci Retracement - Open Deal -
Fibonacci Extension - Taking profit -
Fibonacci Arcs -
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