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Gold, a precious metal that has been with us for thousands of years, and in that time there has still not been any other substitute found on the planet whose value has steadily increased over time while being as highly liquid as is the case with gold.
However, it is possible to invest in gold not only for the long term, but also for the short term, which makes it possible, and usually does, to achieve a much higher appreciation than in the case of long-term investing.
Strategy entry rules
Entering long positions
- Price passes through the entire range from fibo resistance to support
Entry into short positions
- price will pass through the entire band from fibo support to resistance
How to trade with the strategy
Today, this is one of the relatively very simple but highly effective trading strategies, where everything works on the basis of the almost universally known Fibonacci levels, where the most important thing is to plot these levels correctly (insert them into the chart). There are several ways traders plot these levels, but one of the most used is to find the point where the medium-term trend reversal occurred. Then you need to locate the first correction that formed after said reversal and then just insert the fibo (by drawing from the correction to the reversal point - see chart above).
Finally, it is enough to wait for the price to pass through a band (it needs to pass from one level to another) and then after hitting the level it is possible to immediately enter a trading position (see chart below - position entries)
With Fibonacci boundaries, it is possible to achieve long-term success rates in the range of 60-80%, while the usual success rate of this strategy on gold rarely falls below 70%.
