Help CenterThe Fibonacci Retracement Tool is a powerful feature on TradeLocker, and an essential part of any PROP365 trader's toolkit. It helps identify potential levels of support and resistance based on the Fibonacci ratios, which can significantly improve your trade decision-making.
By applying Fibonacci ratios to price movements, the tool helps to pinpoint probable reversal points. This makes it invaluable for both trend-following and counter-trend strategies, aiding traders in identifying high-probability trade setups.
Usage
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Locate the Tool. On the left side of your TradeLocker chart, find the Fib Retracement Tool icon, represented by a series of horizontal lines. Click on it to activate the tool.
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Identify Key Price Points. Identify a significant swing high and swing low on the price movement that you want to analyze.
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Apply the Fibonacci Tool. Click the left mouse button at the swing low, and then drag the cursor to the swing high. Click again to place the retracement lines at the relevant levels.
Editing and adjusting
You can also edit, add, remove or adjust the Fib Retracement Tool to your preferences. The common icon is 23.6% to 8.2% to 50% to 61.8% and 78.6%.
The Fibonacci Retracement Tool is frequently used in conjunction with other technical indicators, such as moving averages or RSI, to validate the strength of a potential support or resistance level. By confirming these levels, you can increase the accuracy of your trade decisions.
By using the Fibonacci Retracement Tool on TradeLocker via your PROP365 account, you can easily identify areas of potential market reversal, simplifying your trading strategy and increasing the probability of successful trades.