Steps to Use Fibonacci Tools:
1. Open a Chart:
Go to TradingView and select the chart of the asset you want to analyze.
2. Select Fibonacci Tool:
On the left-hand toolbar, look for the drawing tools menu (a vertical set of icons).
Click on the pitchfork/ruler icon, and you'll find the Fibonacci Retracement or other Fibonacci tools like Fibonacci Extension.
3. Apply the Fibonacci Retracement:
Select Fibonacci Retracement from the menu.
Click and drag from a significant swing high to a swing low (or vice versa, depending on the trend).
The tool will plot levels like 0.236, 0.382, 0.5, 0.618, 0.786, etc., on the chart.
4. Customize Levels:
Right-click on the Fibonacci levels and select Settings.
Adjust levels, colors, and other parameters as needed.
You can also add custom levels (e.g., 1.272 or 2.618 for extensions).
5. Interpret the Levels:
In Uptrends: Use Fibonacci levels as support levels where the price might retrace before resuming the upward trend.
In Downtrends: Use Fibonacci levels as resistance levels where the price might retrace before continuing downward.
6. Combine With Other Tools:
Use Fibonacci levels alongside trendlines, volume analysis, or moving averages to increase accuracy.
Tips:
Trend Matters: Identify a clear trend before applying the Fibonacci tool.
Use Extensions: For setting price targets, use the Fibonacci Extension tool to project future levels.
Backtest: Practice using Fibonacci on historical charts to see how it aligns with price action.