Markets are trending pretty nice after FED decision. In this post I do not want to make any predictions, I just want to show some good examples how you could use Fibonacci tools during last weeks.
Let’s start from S&P500. There was a strong move up, but take a closer look where it ended – 118% Fibonacci extension. It does not mean it is over of that move, but it was a good place to close order.
S&P500 weekly chart
Those strong moves gave us many good trading opportunities. Let’s see the 1-hour chart for S&P500. After ABC move (to the retracement line) there was a selloff. Price stopped at 138%, 200% and 261.8% Fibonacci retracement lines. Look how accurate it was. With help of Fibonacci retracement lines you can easily plan your exit targets.
S&P500, 1-hour chart
Eur/usd stopped the move up at 78% retracement line. You can see this on daily chart below.
daily eur/usd chart
This situation gave us many good opportunities to go long during that strong move. On the example below you can see that after ABC move there was a breakout. Great opportunity to enter long. During the way up price stopped at each Fibonacci extension line, which could be a good exit target.
eur/usd, 1-hour chart
This is why I like when market is trending strong. It is easy to find many good opportunities across the board. It doeas not matter if you are trading on 15-min chart or daily. You can apply Fibonacci tools on any time frame.
