Retracements , Long*

Ideal Market

After a significant upward trend, price has reversed to the half way point and begun to consolidate

Enter

Just above 50% retracement level

Stop

Just below reversal point

Target

Most recent high used to measure 50% level

Stopped Out?

View this a support violation and proceed to Support, Short...

Trade Management

Fibonacci Standard

*For a short trade using Fibonacci Retracements, invert the chart and trading strategy.

"After a significant price move (either up or down), prices will often retrace a significant portion (in not all) of the original move. As prices retrace, support and resistance levels often occur at or near the Fibonacci retracement levels."

Steven B. Achelis
Technical Analysis
From A to Z

"The Fibonacci retracement phenomenon happens over and over in markets of all kinds. ...It would seem that any market which is liquid (has reasonable volume) works well with this technique."

Ed Downs
7 Chart Patterns That
Consistently Make Money

Trading University