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Fibonacci Retracement is a technical analysis tool that helps traders to determine the support and resistance level. It is named after Fibonacci sequence of numbers that can be found in nature and the Golden Ratio, which is the ratio between two consecutive Fibonacci numbers.
You can easily find and set this indicator on IQ Option trading platform. In this article, I will share everything about Fibonacci Retracement in IQ Option and how you can use them to make good profit.
About Fibonacci Retracement Indicator
Fibonacci retracement is a popular technical analysis tool used by traders to identify the potential levels of support and resistance in the financial market. this tool is based on the Fibonacci sequence, which is the sequence of numbers where each number is the sequence of two preceding numbers. This indicator can be used on any financial asset. Even if you beginner and you don’t know how to draw support and resistance level this indicator going to help you.
In case you don’t know
Support and resistance are the price levels that help trader to analyse the market and identify the upcoming trends & reversals. The Support level is the price level from where the price is expected to bounce back up after a long domination of sellers. whereas, the Resistance level is the price level from where the price is expected to bounce back down after a long domination of buyers. If due to any market uncertainties the price breaks the support or resistance level then it is preassumed the price will continue fall or rise until the next level.
How to add Fibonacci lines on the IQ Option chart
In order to add the Fibonacci lines on the IQ option chart follow the steps given below:
step 1: login to your IQ option trading platform. In case, you don’t have one click here.
step 2 Open the chart for the asset you want to trade on.
step 3: click on the pencil icon and click the Fibonacci levels at the bottom of the menu.
How to use Fibonacci lines on the IQ Option chart
Once you have selected Fibonacci lines from the menu. What you need to do now is find the highest and lowest points of the price. and stretch the Retracement lines below the bottom of the price for the support level similarly, and place the Retracement line above the price for the resistance level.
Buy at the lowest bottom
When the security price is near or below the support level it signals an upcoming bullish trend and here you can consider placing a buy trade.
As you can see, Given above is the 15 min chart of AUD USD and the security price is near the lowest bottom or the support level here, you can place a buy trade for 15 to 20 mins.
Sell at highest top
When the security price near or above the resistance level it signals an upcoming bearish trend and here you can consider placing a sell trade.
As you can see, given above is the 15 min chart of AUD USD and the security price is near the highest top or the resistance level here you can place a sell trade for 15 to 20 mins.
Try Fibonacci Retracement Indicator on IQ Option for free. Click here to get started.