How to Draw Fibonacci Stock Indices Indicator Tool on a Down Indices Trend Price Chart

How Do I Use Fibonacci Retracement Indicator on Downward Indices Trend?

Traders use Indices Trading Fib retracement tool to determine where to place a sell indices trade in a downward indices trend.

How to Draw Fibonacci Retracement on a Downward Indices Trend

To Draw the Indices Trading Fib retracement indicator tool the first thing to know is that this Fibonacci Retracement indicator tool is always drawn in the direction of the indices trend.

If the indices trend is downwards - Fibonacci Retracement indicator tool is drawn downwards.

How to Draw Indices Trading Fib Retracement in a Downward Indices Trend

In the stock indices trading example explained and illustrated below of how to draw the Indices Trading Fib Retracement tool, the stock indices trading market indices trend is moving down between chart point 1 and chart point 2, and then after chart point 2 the stock indices price then retraces up to 38.2% Indices Trading Fib retracement level then it continues moving downwards in the original downward indices trend. Note that this Indices Trading Fib retracement indicator is drawn from chart point 1 to chart point 2 in the direction of the Indices Trend (Downwards Direction).

How to Draw Fibonacci Retracement on a Downward Indices Trend

Technical Analysis of How to Draw Indices Trading Fib Retracement in a Down Indices Trend

The above Indices Trading Fib Retracement technical analysis example stock indices trading setup is a Indices Trading Fib Retracement setup where the stock indices price retraces immediately after getting to the 38.2% Stock Indices Chart Fibonacci Retracement Level.

In this Indices Trading Fib Retracement technical analysis example the retracement of the stock indices price reached 38.2% Indices Trading Fib retracement level and did not get to 50.0% Indices Trading Fib retracement level. It is always good for stock indices traders to use the 38.2% Indices Trading Fib retracement level because most times the stock indices price retracement does not always get to 50.0% Indices Trading Fib retracement level.

This 38.2% Indices Trading Fib Retracement level provided a lot of resistance for the stock indices price retracement, this was the best place for a indices trader to place a sell limit indices order as the stock indices trading market indices trend quickly moved down after retracing to this stock indices price retracement level.

Tutorial of How to Draw Fibonacci Stock Indices Indicator Tool on Indices Charts

Tutorial of How to Draw Fibonacci Stock Indices Indicator Tool on Indices Charts