In this lesson, trending and ranging markets are explained. A trending market is indicative of price moving up or down (creating runs and pullbacks), whereas a ranging market moves sideways without any clear direction. It’s very important to identify the difference between the two market conditions, as we prefer to trade in trending markets where there is more volatility, thus allowing for more opportunities.
The Fibonacci Retracement tool is something that you will utilize in your analysis every day. It’s used for planning entries, stops and even targets. What the retracement tool actually does, is assisting us to measure the potential pullback within a run. Fibonacci (also known as the golden rati...
The Fibonacci Extension tool is utilized to measure the actual run within a trending market (as opposed to the retracement tool, which measures the pullback). In this lesson, you’ll learn how to set up Fibonacci Extension and see examples as to how to apply the tool to your charts.
