Fibonacci_RSI_Trading_Case_Study.pdf

This case study is built on a single chart: Micro Gold Futures (MGC) on a 4‑hour timeframe.

The goal is to teach one thing:

How a trader can use Fibonacci retracement levels combined with RSI to identify a trend, decide when to buy or sell, and manage risk.

Look at the chart and you’ll see three trades marked:

• Trade A – Long
• Trade B – Short
• Trade C – Long

These three trades show how powerful this combination can be.

What Are Fibonacci Retracement Levels?

When a market makes a big move up or down, it doesn’t move in a straight line forever. It “retraces” – it pulls back to certain percentages of that move.

The most important percentages are:

• 0.5 (50%)
• 0.618 (61.8%)
• 0.71 (71%)
• 0.786 (78.6%)

These act like “gravity points” where price often stops, bounces, or reverses.

What Is RSI?