How to use the Fibo line

@ Haikal:

If the price movement is retracing from an uptrend to a downtrend, then the Fibonacci retracement line is drawn from the swing high point to the swing low point. Conversely, if the price movement is retracing from a downtrend to an uptrend, then the Fibonacci retracement line is drawn from the swing low point to the swing high point.
For an explanation of Fibonacci retracement, please read: Trading With Fibonacci Theory

 

Can Fibonacci be used to measure trend strength?

@ Al Ghazali:

- Can Fibonacci be used to measure trend strength?

It can't. Fibonacci levels only indicate support or resistance levels when the price movement is retracing (Fibonacci retracement), or when the price movement is expanding (Fibonacci expansion).

 

To Al Ghazali,

The levels generated from Fibonacci tools cannot be used to measure the strength of a trend. Fibonacci is typically used by traders to determine how much the price is likely to correct (Fibonacci Retracement) or how far the price will return to its main trend after a correction (Fibonacci Expansion).

Hopefully this can help.

Answer to Al Ghazali:

No. Fibonacci cannot be used to measure the strength of a trend itself.

Fibonacci is more of a tool to identify potential levels where a trend might bounce or reverse direction. Fibonacci retracements and extensions can be used to measure levels where a trend may reverse or continue its trend.