How to Draw Fibonacci
The ideal timeframe for drawing a Fibonacci retracement depends on your trading style and goals. For short-term traders (scalping/day trading), a timeframe of 5 minutes to 1 hour is recommended. For medium-term trading, a daily timeframe (1D) is often used, while for long-term trading (swing trading or investing), a weekly (1W) or monthly (1M) timeframe may be more appropriate.
In general, identify the main trend on a higher timeframe and apply Fibonacci levels on a lower timeframe to enter trades. It’s crucial to draw the levels from a low to a high (in an uptrend) or from a high to a low (in a downtrend) to pinpoint key support and resistance levels accurately.
I use TradingView as my tool for this analysis.
