LCM DAILY FIBO RANGE INDICATOR
click chart to enlarge…
usdjpy March 22 2019
When the daily range meets the Fibonacci range we have an important level. Here we see that on March 21 2019, the range bounced off 23.6 fib below and 23.6 fib above. I know that most people are confused about which fib level to use. I don’t have to give you a full fibonacci course to figure that out. We are looking for price to bounce off the fib level that is closest to the exhaustion lines from the daily projection indicator.
So, we have our range projections and our fibonacci projections. See the chart below…
Look at the upper exhaustion level. It is right at the 38.2 fib level. Te lower exhaustion level is at 50% fib. So, our bias for a reversal level after an up move is the 38.2 level ( 111.268 ) and the reversal bias to the downside is 50% ( 110.291 ).
Yes, we can just use one of the indicators. The daily projections or the daily fib projections. However, The confluence of the two adds the edge of higher probability.
Right now, don’t worry too much about the trading aspects. Just get an idea of the basic concept and how we use the tools. That way I can get you very tight…very tight.
click chart to enlarge…
LCM DAILY FIBO RANGE INDICATOR DOWNLOAD LINK BELOW…
https://forextradingmajic.com/indicators/lcm-daily-fibo-range-indicator-download/