How to Trade Retracement on Upward Metals Trading Trend
How Do I Draw Metal Fibonacci Retracement for Metal Trading Uptrend?
The Fibonacci retracement indicator is placed on a metals chart in an upward metals trending market and this Metals Trading Fibonacci Retracement indicator then calculates the retracement levels for the metals upward 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 metals price is moving up between chart point 1 and chart point 2 then after chart point 2 it retraces down to 50.0% retracement level then metals price continues moving up in the original upward metal trend. Note that this metals trading Fibonacci retracement indicator is drawn from point 1 to point 2 in the direction of the Metals trend (Upward Direction).
Because we know this is just a retracement based on our metals chart metals trend - using this Fibonacci retracement indicator, we put a buy order just between the levels 38.2% and 50.0% retracement levels and our stop loss just below 61.8% retracement level. If you had put a buy at this point in the trade example illustrated and explained below you would have made a lot of pips after the metals price retracement reached the Fibonacci 50.0% level and then continued moving in the original upward metal trend.
How to Trade Metals Price Retracement on Upwards Metals Trend - Metals Fibo Retracement Levels Trading
Explanation for the Above Metals Trading Fib Retracement Strategy Examples
Once the metals price hit the 50.0% Fibonacci retracement level, this retracement level provided a lot of support for the metals price, and afterward metal market then resumed the original upward metals trend & continued to move up.
23.6% Fibonacci retracement level provides minimum support & is not an ideal place to place a metals trade order.
38.2% Fibonacci retracement level provides some support but metals price in this example continued to retrace up to the 50% zone.
50.0% Fibo retracement level provides a lot of support and in this example, this was the ideal place to set a buy metals trade order.
For this Metals Trading Retracement Strategy example, the metals price retracement reached the 50.0% Fibonacci retracement level, but most of the time the metal market will retrace up to 38.2% Fibonacci retracement level and therefore most of the time metals traders set their buy limit metals orders at the 38.2% Fibonacci retracement level, while at the same time placing a stop just below 61.8% Fibonacci retracement level.
