Using Fibonacci Ratios And Momentum

An advancing market will often run a quick series of daily bars, three or four days in a row, with the high of each day exceeding the previous day’s high and the low of each day holding above the previous day’s low.

Then the market will spend a few days in congestion, perhaps retracing the previous advance, then again trending upward.

Ideally, you should see this retracement as an opportunity to place a position in the direction of the trend, trading like the pros — buying a pullback, not chasing the market.


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