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Trading the Fibonacci retracement level like a pro

Trading the Fibonacci retracement level is one of the most difficult tasks in the trading industry. Most of the time the traders use the lower time frame and trade the wrong swing. To make a profit by using the Fibonacci retracement tool, you must learn to trade the market in a higher time frame. If you start analyzing the higher time frame data, it will be really easy to analyze the key swings. Once you learn to find the key swings, things will be really easy and you will be able to make more profit without taking too much risk. Trading is more like placing the best trades with low risk. The Fibonacci retracement trading strategy provides you with the perfect edge.

Today, we are going to give you some amazing tips that can help you trade the critical Fibonacci retracement levels like a pro trader. Let’s explore the key steps.

Analyzing the higher period

You need to analyze the higher period to make some big profit from this market. Most of the time the naïve UK traders think lower time frame trading is the best way to earn more money. But this is not how the market works. You have to choose the bigger time frame data since it is the most efficient way to find good trades. Once you switch to the higher time frame, you can easily filter out the key swings. The professional traders use the swing high and low to find the critical trading zone in the market. Though it will be a little tough at the initial stage once you start to trade this market with strong discipline, it won’t take much time to understand how the key swings work.

Trade with the robust trading platform

When you use the Fibonacci trading strategy, you need to trade with a robust trading platform. Join here and start using the SaxoTraderPro platform so that you don’t have to find any technical glitch. Those who trade with the average broker are always having freezing platform issues and losing a big portion of their capital. But have a look at the elite traders. They never trade with the unregulated broker since they know their success greatly depends on their trading skills. If you want to make a big profit, make sure you take to look at the risk exposure. To manage the risk while using the Fibonacci retracement strategy, you should learn about the disciplined approach.

Execution of the trades

 This is the most crucial part when you use the Fibonacci trading strategy. Most of the time, the naïve trader blows up the trading account, since they don’t know the perfect way to execute the trades. Execution of the trade is more like an art. You should not execute trades at all the important levels, rather you should try to execute trades at the 38.2%, 50% and 61.8% retracement levels. Once you learn to deal with these features, it won’t take much time to develop your skills as a currency trader.

Using the price action confirmation signals

The elite traders always use the price action confirmation signals because it allows them to make a big profit from this market. Most of the time, the traders get confused after losing a few trades. But if you look at the smart traders, you will realize that they are using the price action confirmation signals. By using the price action signals, you can easily place the stops when they trade the critical levels. Look at the long term goals and learn to place safe. But some of you might get carried away by seeing the success rate of the price action signals. This is a very big mistake. If for any reason, the price breaks below the 61.8% retracement level, you should consider it as a trend reversal. In such a case, you need to accept the loss and wait for the next trade.