How and Why to setup Fib Levels

Setting up a fib level to trade a swing. Fib is to identify level where the price may retrace to after moving up or down. The trend is up and we need to get in- to what level the price will come down in order for me to get in the trade. Steps to create a good setup:

• Identify which swings would be good Fib anchors
• Identify high/low swings — top and bottom, these moves will be an anchor for a fib.
• Identify support/resistance
• Identify Daily/Weekly/Monthly - Open/Close/High/Low
• Create levels