Do you know how professional traders in Olymp Trade make a stable profit when trading with the Fibonacci indicator? It’s a simple, yet incredibly effective trading strategy that everyone can apply. And if you do not know about it, I am sure you have missed many “delicious” opportunities in the market. To increase your account profits, you should not ignore the review article on good Fixed Time Trade entry points with the Fibonacci indicator.
It is necessary to determine the current trend of the market
Not surprisingly, when you visit a trading guide website, there is a saying: trends give you everything; trends are the best friends, etc. It’s simply because when a trend is determined, your chances of winning will increase. In particular, the trend becomes even more important when you use the Fibonacci tool to trade.
For finding the current trend, it can take 5-10 minutes for beginners. That’s the first thing you need to do if you want good trading results with Fibonacci. Practice such a habit every time you open the chart to observe. It will give you a better overview of the market and upcoming predictions.
Step 1 is done after you have clearly identified the market trend. The next step is also quite important in helping you have a perfect trading order with the Fibonacci sequence.
Choose the Swing High and Swing Low
Everything has to have its purpose. I recommend that you identify a trend to rule out an option when you have two options, UP or DOWN. For example, if it is an uptrend, you can immediately get rid of the “DOWN” option. In contrast, in a downtrend market, you should never choose the “UP” option. Remember, going in the same direction as the trend will make your profitability very high.
It also helps you find swing highs and swing lows. Those two points are essential for drawing the Fibonacci sequence. If you cannot find them or incorrectly identify them, chances are your predictions will be inaccurate, because they have been wrong in the first place.
The preparation stage has been completed when the Fibonacci sequence has been drawn. Now, we just have to wait for the price to enter a favorable zone to open an order. It sounds easy but waiting for something or an event to happen is extremely difficult for investors.
Next, when the opportunity comes, what will you do? Go and grab it. Next, I will show you how the opportunities appear on the Fibonacci sequence.
How to trade with the Fibonacci indicator in Olymp Trade
In order to have a solid up or down structure, the market needs adjustments. Based on that habit, when the price adjusts to the important levels on the Fibonacci sequence, it is time to consider opening an order.
Open UP orders when: the price is in an uptrend and is adjusting down to 0.16, 0.236, 0.382, 0.5, 0.618, 0.7639, etc. levels of the Fibonacci sequence which are seen as support levels.
Open DOWN orders when: the price is in a downtrend and is adjusting up to 0.16, 0.236, 0.382, 0.5, 0.618, 0.7639, etc. of the Fibonacci sequence which are seen as resistance levels.
Notes: At important levels of the Fibonacci tool, you need to combine it with other technical indicators or reversal candlestick patterns to increase the probability of winning the order to the highest level.
Review good entry points with Fibonacci in Olymp Trade
Trading currency pair: EUR/USD.
Balanced investment of $500 for each order with a 30-minute expiration time.
1st order: The EUR/USD pair price on March 22 was in an uptrend. In order to form a solid bullish structure, the price began to adjust at the Swing High. The signal for opening an UP order with an expiration time of 30 minutes was a reversal Hammer candlestick at the 0.618 (support) of the Fibonacci sequence.
2nd order: At the EUR/USD currency pair on March 24, the market was in a downtrend. Opened a DOWN order right when the Bearish Engulfing candlestick pattern appeared at the 0.168 (resistance) of Fibonacci.
3rd order: The EUR/USD was in a stable downtrend at the end of March 25 and early March 26. A bullish adjustment took place near the Swing Low. The signal for safe entry was a Harami Bearish candlestick pattern at the 0.7639 (resistance) of Fibonacci.
4th order: On March 29, the EUR/USD price was in a downtrend. The adjustment took place and the entry signal was an Evening Star candlestick pattern.
Through the above review article, have you found yourself overlooking many opportunities to increase your account balance when you do not know how to trade with Fibonacci yet? If not, then test them out on a Demo account now. Maybe, it will be the right trading strategy for you. Despite its simplicity, it is very effective for traders who use it.
Remember, in Fixed Time Trade transactions, quality is better than quantity. It is better to wait for an opportunity for many days but it gives the highest probability of winning instead of entering orders every hour, every day, but the profitability is extremely low.