Hello everyone! My name is Trang. This is the first time I’ve ever participated Dukascopy Trader Contest. However, I'm happy that I'm still holding my position in the Top10 traders of this month.

You guys can visit my contest blog by follow this link: Thanh_trang167's page - Trader contest
 
In this series of posts, I will share with you my simple successful trading method. Check out my blog regularly for more info

The first part of this series can be found here

In this post, I will show you how I use Fibonacci tools and other standard indicators inside our great JForex platform to forecast a turning point and make a trade.
Let’s start with a chart like this…

First, I will add Zigzag indicator for it to show me the turning points mechanically without letting my own feeling affect my judgment.

Now if you don’t know how to add an indicator into your chart, it is really easy.

Look on the low left corner of JForex, you will see all your charts are located in Workspace window
Right Click the chart you want to add more indicators, select Add Indicator >> More...

“Add indicator” window will open, now select “Alphabetical” and type the name of the indicator you want in “Quick filter” box

In this case, just type Zigzag and press OK

Now you have zigzag indicator on your chart.
Next, click on GF button on your tool panel, choose Fibonacci Time Zones

Draw it on your chart from the latest top we see here, after 2 clicks, drawing process done.

But we don’t like the default levels, we need the Golden ratios: 0.618 & 1.618.
So you will now double click the Time Zones lines you just drawn on the chart again, then Right Click and choose “Edit levels”

“Edit levels” window will appear, now type in the ratios we want

Try adjusting your Fibonacci Time Zones, make sure you drawn it from top to top (or bottom to bottom) and 0.618 line should fit with a top or bottom in the middle space in between.

We had the forecasted time at 1.618 line of the Fibo Time Zones, now we need to look for a good price!
Choose GF again, then choose Fibonacci Retracements. You will draw it from the low to the high

Again, after you have done it, double click a Fibonacci Retracement level, then Right Click it and choose “Edit levels”

Add 132.8% level in. In my opinion, this is an important level.

Now we have the time and the price of our target. A very specific target, right? Then we just wait for the market to trigger it.
On this chart, I have drawn a Rectangle with an arrow below to show our projected target.

To support my decision making process, I usually check the Bollinger Bands and Stochastic indicators. You can go ahead and repeat what we have done above to find and add them in.
For Bollinger Bands, type BBands

For Stoch, type Stoch

Our target got triggered, Stoch crossed above, price touched 132.8% Fibonacci level, reversed then tried another time to get down but ended up closing above our 132.8% Fibonacci level.
The lowest price did not even exceed our Bollinger bands.
Combine all these factors, we have a good entry for going Long.

This is what we got after we jumped in,

Now just draw a new Fibonacci Retracement from the past high to the past low to get an exit target. We see that price was capped at 138.2% level on the upside again. Have a take profit there. Now we can enjoy a good trade.

Thanks everyone for reading! Your comments and discussions are welcome!
Good luck and happy trading!

 Stay tuned for the last part...