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.
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.
Eur/usd stopped the move up at 78% retracement line. You can see this on daily chart below.
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.
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.