Hello everyone! My name is Trang. This is the first time I’ve ever participated Dukascopy Trader Contest. You guys can visit my contest blog by follow this link: http://www.dukascopy.com/tradercontest/?action=blog&trader=thanh_trang167

In the first few days, I fell to #700 on ranking list with only 70k left in my trading account. At the time, I thought it was impossible for me to get on Top 20. However, I still thought that it could be a good chance to practice so next month I will trade better. I sat back, analyzed my mistakes and redesigned my strategy. This is the end of the second week in April 2012 contest, and my account now is over 400k. I am happy to say that I have successfully made it to Top 10.

In this series of articles, I am going to share with you the factors that brought me to Top 10 in the last 2 weeks. It could be useful for your trading, too.

First, let’s talk about an effective market timing tool: Fibonacci Time Zones.
Why Fibonacci Time Zones? Just take a look at this pic and you will know why…

It precisely called out a bottom on USDCHF chart. You can note the time there and then wait until the market comes there.

If you have used Fibonacci Time Zones, then Congratulation! You had a good tool in your hands. All you need to do is to wait until the natural cycle triggers it. If you never used Fibonacci Time Zones before, the rest of this post will present to you how you are going to have it on your charts.

1. Customize your drawing panel

Right click your drawing panel, choose Customize, the following window will appear:

Now you can scroll down, choose Fibonacci Time Zones on your left and press Insert to add it to your selected tools.

2. Draw Fibonacci Time Zones on your chart

After you added it to your selected tools, you can go ahead and click on the button to activate it, then press and hold left mouse to draw it anywhere you want on your chart.

For the first time, it will give you just numbers of the Fibonacci sequence. But I prefer working with the golden ratio, so I modified it a little bit. Double click to select the Fibonacci time zones you just drawn, then right click on it, choose Properties.

Delete all the numbers higher than 1 then add 1.618.
Now you have the golden ratio to forecast turning points on your charts.

I just draw it from top to top, bottom to bottom. The turning point will likely be the same type, but sometimes, it can be the other.

Remember: the shaper the tops/bottoms you use as drawing points, the better your forecast will be.

Example: AUDUSD

Stay tuned for next part...

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