Surely everyone has heard about Fibonacci levels or grid. This is a special layout that has a certain level, in which you can determine the next target price. We know that this is the price is not in place, and the time varies. With strong trend move it shows well, which will be rolled back and, therefore, where to take profits.
The strongest marks are 38, 61.8, 138, 161.8.
You can not consider this article as a guide to trading, but noted that the strong movements rollback necessarily mean 61.8 correction and if he does come, it is often sent to around 38. Often, after that, the market continues to move in the same direction.
Proceeding from the above, using Fibonacci levels can not only record profits, but also look for an entry point into the market. Thus, the trader enters the market on pullbacks, not blindly.
For a more accurate trade use additional levels. So-called "ten percent band." In the setting of the grid they occupy levels of 0.1 and 0.9. And if the description to add the characters "% $ ', then on each line will be displayed price corresponding to its location. This is very handy when you need to quickly find a price for a specific layout.
Fibonacci lines is good to use in combination with other tools, such as RSI indicator , it shows the degree of "overbought" or "oversold" market, thus confirming the movement through the levels.