A Fibonacci level on its own is a maybe. A Fibonacci level that lines up with something else is a probably.
Things that combine well with Fib
- Old support or resistance (role reversal).
- Trendlines and channel lines.
- Moving averages like the 50 EMA.
- Round numbers.
- Candlestick patterns forming right at the level.
Wick says
Confluence is like several friends recommending the same restaurant. One opinion is a guess. Five is a reservation.
Key takeaways
- Look for Fibonacci levels that overlap other levels.
- The more reasons at one price, the stronger the zone.
- Wait for a trigger candle inside the zone.