right top and bottom? OK, enough of the history lesson. There is some reaction at the 127 extension line you could close some part of your position here. You decide that the price is moving strong and there is a weekly R2 level ahead. For example, when the price reaches the.8 retracement, you go long at this level or a little bit above. Just read this chapter free bitcoin erfahrungen or skip it and return to study it later when you will have more experience in using the retracement and extension. What periods of the moving averages are the best? We hunt for a strong move forward to the extension line. Then, buyers came back, the 200 SMA (strong resistance before) was broken and euro started to move up strong. That is why you need a good plan.
When we are sure that we have number of bitcoins found the ABC move, we can draw a Fibonacci retracement with a tool from our chart software. This is the main way I manage my trades, but you may want to choose some technical indicator to confirm the exit signal (for example for parts 2 and 3). Then, you can move on and use other tools, such as fan or arcs. Eventually, there was resistance just at the 138.2 extension line. An example may be very helpful here to convince you to use the rule. The game plan is simple:. But until you close the trade and take the profit, it is virtual profit. The Fibonacci Extension. You should check the daily Pivot points only when you are opening a trade (not to open it at the daily R2 line).