How to Trade with Fibonacci Retracement

@ Herli:

Fibonacci levels, both retracement (FR) and expansion (FE), indicate support and resistance considered quite accurate and can be used as benchmarks for entry and exit levels.

For example, on the current EUR/USD daily time frame: (see also: Major Forex Pair Technical Analysis: April 25 - May 2, 2018):



It appears a double top pattern is forming at the FE 23.6 level, suggesting a bearish move. You can sell at A after the price breaks the middle band curve of the Bollinger Bands, with a target profit (TP) at the FR 38.2 level. At least 50 pips can be obtained.
After failing to break the FR 38.2 resistance level, you can also sell again with a TP at the FR 50 level.

Also, in the previous movement, after forming a tweezer bottom pattern at the FR 38.2 level, suggesting a bullish move, you can buy at B after the price breaks the resistance curve of the ema 55, with a target profit at the FR 23.6 or FE 23.6 level.

Regarding the time frame, both Fibonacci retracement, expansion and Fibonacci fan, can work well on all time frames. However, the higher the time frame you use, the more accurate it will be.

Also read the forum Q&A about Fibonacci here.

Does that mean with this fibo we need to pay attention to candle patterns, master...?.. Then if we don't pay attention to candle patterns, for example only looking at the ADX and stochastic indicators combined with fibo, would that be okay.... Because I don't understand fibo.

@ Herli:

It is possible, but often less accurate or frequently misses because almost all technical indicators calculated mathematically are lagging or late in responding to price changes. The calculation is done after the price moves, so it is always late. But statistically, indicators can be used to predict the direction of price movement.

Candlestick patterns or price action are leading (the opposite of lagging) so they can predict the direction of market sentiment faster than technical indicators.
Traders usually combine price action and indicators. Price action to determine the direction of market sentiment while indicators to confirm and find the right momentum for entry.