In 1202 an Italian mathematician completed his Liber Abaci ( Book of Calculation). He introduced to the modern western world Hindu–Arabic numeral system (0,1,2,3,4,5,6,7,8,9) as much more efficient way to solve different mathematical tasks in commercial bookkeeping, converting weights and measures, calculation of interest and other applications. That was Leonardo Pisano Bigollo, figlio (son of ) Bonacci , well known today as Leonardo Fibonacci ( 1170? – 1250? )
Ralph Nelson Elliott (28 July 1871–15 January 1948) did pure technical analysis of different stock market data. In August 1938, he published his third book - The Wave Principle . He stated that stock market prices may appear random but they actually follow predictable, natural laws and can be measured and forecast by using Fibonacci numbers. It is not as easy as it looks like. It requires of traders to have:
• - good trading experience to make right market analysis ;
• - solid psychological resistance on price fluctuations .
But...There is much more simple and easy to follow trading approach using Fibo Ratios .Description of the strategy Some concepts should be clarified initially :
• - Impulsive movement of the price : a particular big movement for relatively short period of time ;
• - Corrective movement of the price : a particular small movement for relatively long period of time .
• - Generally , the price follows that sequence : Impulse - Correction - Impulse - Correction ...
Applying the strategy in the practice :

• - When an impulsive movement is spot , Fibonacci Retracement Levels tool should be applied on it from its Low to its High points . Adjust the tool till the price stops moving in that direction . Impulse is over . Measure its length of time ... and wait for the correction to develop.
• - If this really is a correction , for the same time period the price should not to do the retracements more than 100% . Place a Limit Order to Open the Position at Retracement = 62% with SL at 100% and TP at 0% . If the Order is executed wait to be hit TP ... or SL .
Every strategy has two main purpose :

• - to send a signal when there is chance to win ;
• - not to send a signal when there is chance to lose.
Trade the strategy on demo account to become familiar with it and should know that there are no perfect strategies . The common weaknesses are :
• -sending false signals ;
• - missing good opportunity .
This weaknesses can't be avoided , they should be accepted . So it is necessary to be applied proper Risk Control and Money Management . Risk for every trade no more than 3% ... so if you have up to 10 losing deals in a row , your account not to drow down more than 30% . Happy trading with Simple GOLDEN MEAN
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