|
A lot comes from an experienced eye. However, it is soon learned. Try drawing them from different places and try not to focus on the small moves, look for daily and 4 hourly significant moves to draw from.
Then once you have the fibs, determine a general direction (this is probably least important) and then look for evidence of reversal into your preferred direction off the fibs. The key is to find evidence of reversal such as spikes, doji's, tweezers and engulfing candles.
Fibs are especially important when they coincide with other fibs, SR lines, Bollingers, T/L's etc.
|