have an account?【sign in】how to draw fibonacci retracement on thinkorswim?
oluauthorThe Fibonacci retracement is a popular technical analysis tool used to gauge the potential price movement of a security or asset. It helps traders and investors make informed decisions about where to buy or sell, based on the historical price action of the market. The Fibonacci retracement is calculated using the Fibonacci series, a mathematical concept that relates the price movement to the natural frequencies of the golden ratio. In this article, we will show you how to draw Fibonacci retracements on the popular trading platform, ThinkOrSwim (TOS).
Step 1: Login to ThinkOrSwim (TOS)
First, log in to your ThinkOrSwim (TOS) account. If you don't have an account, you can create one by visiting the CMC Markets website and following the steps to register.
Step 2: Access the Fibonacci Retracement Tool
Once you are logged in, access the Fibonacci retracement tool by clicking on the Tools menu and selecting "Fibonacci Retracement".
Step 3: Select a Time Frame
On the Fibonacci Retracement tool page, select the time frame you want to analyze from the drop-down menu. This can be any time frame, such as 15 minutes, 30 minutes, 1 hour, 4 hours, or 1 day.
Step 4: Draw Fibonacci Retracement Levels
On the chart, draw two straight lines, one above the current price and one below. These lines are called the upper and lower Fibonacci retracement levels. The distance between these lines is the Fibonacci retracement range.
Step 5: Calculate Fibonacci Retracement Levels
To calculate the Fibonacci retracement levels, use the following formula: (Price - First Fibonacci Retracement Level) + First Fibonacci Retracement Level = Second Fibonacci Retracement Level. Repeat this calculation for the other Fibonacci retracement levels.
Step 6: Analyze the Fibonacci Retracement Levels
Once you have drawn and calculated the Fibonacci retracement levels, analyze the price action within the Fibonacci retracement range. This can help you identify potential support and resistance levels, as well as potential entry and exit points for trades.
Step 7: Export the Fibonacci Retracement Data
To save or export the Fibonacci retracement data, right-click on the chart and select "Copy Chart Data" or "Copy Chart Data as CSV". Paste the data into a text editor or spreadsheet program, and save it for future reference or analysis.
Drawing Fibonacci retracement levels on ThinkOrSwim (TOS) can be a powerful tool for traders and investors to help them make more informed decisions about potential price movement in the market. By understanding the relationship between price action and the Fibonacci retracement levels, you can better position yourself for potential gains or reductions in your trading portfolios. Remember to always conduct thorough research and keep an eye on market trends when using any technical analysis tools, including the Fibonacci retracement.