Fibonacci Retracement Levels scores hat-trick with Hang Seng Index
61.8% Fibonacci Retracement Level resists Hang Seng Index on Monthly Chart
Back in the beginning of June I published this posting ‘Technical analysis: N225, HSI, STI price action rejects Fib ratios‘ where I observed that the Hang Seng Index was resisted by the 61.8 percent fib retracement from the 2007 high to 2008 low. First resistance was encountered late 2010 till early 2011 and then re-tested early this year. First goal.
76.4% Fibonacci Retracement Level rules the 2013 market correction
Second goal. This level complied with the June 2012 – February 2013 rally.
76.4% scores hat-trick in May on smaller pattern
4 tips to use Fibonacci Retracement Levels for trading
- Recognise that Fibonaccis are very powerful phenomenon used for trading; there are very strong market psychology involved at important fibonacci retracement levels
- Be acquainted with the best way to trade fibonacci retracement
- Practice discovering fib retracement levels by looking at major price patterns; repeating the drill of drawing from high to low, low to high
- Fib levels are meant to be observed. While they have stopping power, price levels may overshoot sometimes. So fishing by placing orders to be filled at key fib levels are a poor way to trade.