A trading strategy based on Fibonacci retracements, which is a common tool in technical analysis of financial markets. The goal of this strategy is to identify the best area to sell after a strong downward movement.
• Fibonacci Levels: These are percentages (0%, 38.2%, 50%, 61.8%, 78.6%, 88.6%, 100%) used to identify potential support and resistance levels from which the price may bounce. They are drawn from the peak (100%) to the trough (0%) in a downward trend.
• Supply Zone: This is a previous price area where there was a sharp decline, indicating a large number of sellers. Traders expect that if the price returns to this area, it will face selling pressure again.
• Manipulated: This term refers to a price movement that may be deceptive. In the chart, the price rises to the 61.8% level, which is a common retracement level. Some traders may think this is the right time to sell, but the price continues to rise, potentially trapping them.
• Ideal Sell Area: According to this strategy, the most probable and strong area to sell is between the levels of 78.6% and 88.6%. This area is considered a 'very good probability sell zone' as it represents a deep correction of the original downward movement and is often a strong reversal point.
Strategy Summary:
1. After a clear downward trend, wait for the price to start correcting (rising).
2. Avoid selling at the first retracement levels like 38.2% (low probability) or even 61.8% (may be a manipulation zone).
3. The best selling opportunity occurs when the price reaches the deep area between 78.6% and 88.6%, where the original downward trend is likely to resume.
Shortcut:
The image provides a visual guide to using Fibonacci levels to identify high-probability entry points for sell trades, with a warning about common traps at shallower levels.
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