Short Term Trading Nifty Future Using Fibonacci Retracement Level

Fibonacci retracement level is actually combination of ratios of numbers of Fibonacci series. These ratios are used as support resistance in stocks and other financial markets, most of traders look these level for placing their entry orders also it is used to place stop loss for trade. So overall Fibonacci retracement in very important or I say must have tool for trading. Now I will demonstrate on how to use this trading tool, before using Fibonacci retracement traders must be clear about market trend i.e. in which direction market is moving then look for trades in same direction. Suppose market is moving upward then we will open buy positions only, for using Fibonacci retracement you need swing high and swing low (in other words recent high and recent low). Just apply Fibonacci retracement to that high and low, so now you will get retracement levels on your chart. Then see if market is taking support near any of those retracement levels that point will our buy entry point and then we can wait for 100 point target and placing stop loss just below support level. Remember if trend is downtrend then Fibonacci retracement level acts as resistance and then on retracement you will enter short position on nifty future.