Fibonacci is used many ways, but how many of you ever use it to determine the balance point between long and short? Fibonacci can be used to help identify reversal points in the market as they are unfolding and help give us one more tools in our inventory; to give you that ever so hard to keep edge in trading. Reversal signals are key in keeping pace with market sentiment. There are ways that we can use the Fibonacci tool as an aid in seeing these reversal points and to be able to look past its levels as merely support and resistance points. Used properly the Fibonacci tool can give you that looking glass that measures overall market sentiment. A simple observation is all that’s needed with the application of the Fibonacci tool to measure the balance between a long and short market sentiment. One day to the next can give us the direction that the market is most likely to take the following day along with a few basic rules of using the Fibonacci tool
No comments:
Post a Comment