How to Trade Retracement on Downwards Metals Trading Trend
How Do I Draw Metal Fibonacci Retracement for Metal Trading Downtrend?
The fibonacci retracement indicator is placed on a metals chart in an downward metals trending market and this Metals Trading Fibonacci Retracement indicator then calculates the retracement levels for the metals downward metal trend on the metals charts. Fibonacci retracement levels metals indicator is used by many metals traders as a metals trading retracement trading technical indicator.
In the Metals Trading Retracement Strategy example illustrated and explained below the metal market is moving downwards between chart point 1 & chart point 2, then after chart point 2 the metals price then retraces up to 38.2% retracement level then it continues heading downwards in the original downward metal trend. Note that this metals trading Fibonacci retracement indicator is plotted from point 1 to point 2 in the direction of the Metals trend (Downwards Direction).
Because we know this is just a retracement based on the metals chart metals trend we put a sell order at 38.2% Fibonacci retracement level and a stop loss just above 61.8% Fibonacci retracement level.
If you had put a sell order at the 38.2% Fibonacci retracement level as shown on the metals trade below you would have made a lot of pips afterwards after the metals price reached the 38.2% Fibonacci retracement level and then resumed the downward metal trend.
In this trade the retracement of metals price reached 38.20% Fibo retracement level & did not get to 50.0% Fibo retracement level. It is always good to use 38.2% Fibo retracement level because most times the metals price retracement doesn't always get to 50.0% Fibo retracement level.
How to Trade Metals Price Retracement on Downward Metals Trend - Metals Fibo Retracement Levels Metal Technical Indicator on Metal Chart
Explanation for the Above Metals Trading Fib Retracement Strategy Examples
The above Metals Trading Fibonacci Retracement Strategy example is a metals retracement trading setup where the metals price retraces immediately after touching the 38.2% Metal Chart Fibo Retracement Level.
This Metals Trading Fibonacci Retracement level provided a lot of resistance for the metals price retracement, this was the best place for a trader to place a sell limit metals order as the metal market quickly moved down after hitting this 38.2% Fibonacci retracement level.
