Trendline Support and Resistance and the Fibonacci Retracement Technique
The Technique i am talking right now is not a new advanced technique that gives 100% Accuracy instead it’s a systemized trading plan made from combined Techniques which are followed from most probably the starting of Technical Analysis. The conformations from Trendline,Support and Resistance and Fibonacci Retracement for both BUY/SELL of Assets makes us more confident about the position we are holding. The thing we are doing here to get Buy and Sell Signal with multiple confirmations with proper risk ratio and make most out of a Trade. Let me illustrate just what i said above
1.Perspective of Trendline traders
We can see a major bearish market on the pair EUR/AUD selling pressure. The more momentum can be seen after the price comes to retest the trendline which acts like a resistance the traders who respect the trendline trading stratergy go short when the price retests the trendline.
2.Perspective of support and resistance Traders
After the break of support the sellers are now more confident to take short positions however the price should retest the zone of support to make resistance and confirm the concept of break and retest. The trendline traders takes most short positions on point 3 and that confirms the bearish trend structure however, the support and resistance traders are also now taking short positions on point three as there is a major Resistance Zone and that drives the price more bearish.
3.Perspective from Fibonacci Retracement Traders
Traders who mostly uses Fibonacci Trading Techniques to predict the price action also take short position on 50% retracement which is a golden ratio. Here all three Trendline traders Support and resistance traders as well as the Fibonacci traders takes short positions as per the trend the thing we can learn is just go with the trend and the more it gives confirmations from most of the trading techniques the trades are most probably are going to be profitable. With this all don't forget to put essential Stop Loss never forget the rule which is DONT LOSE MONEY.
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