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Introduction Fibonacci ratio is a golden ratio that you can find in nature all around us. It is how tree divides its branches and how the mountain is formed and many more. The most powerful ratio that is widely used in forex trading is the 0.328, 0.5 and the 0.618 levels. Usually, you will find the price respecting these levels by bouncing off them. It is not necessary for you to know the mathematical formula behind the golden ratio as your trading platform will definitely get it done for you without the need for you to know the formula.Fibonacci Retracement is the collapsing of price when it hits a certain level. If the price is moving in the Fibonacci patterns, you will find that it will be supported by the 0.328, 0.5 or the 0.618 levels and this is usually where you can take your trades waiting for reversal.In order to go into how you can make use of Fibonacci in your trading, you ought to know what exactly Fibonacci is all about.How to draw the Fibonacci level:Place your cursor on a swing highDrag your cursor to a swing lowMake SURE that the swing is at least 20 to 30 pips Select the levels you want to display and you are done.Most trading platform will be able to help you to d…
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lazarojr avatar
lazarojr 13 Mar.

Drishti, This strategy would be an operation against the main trend of the market. When the market is too stretched. I mean when the market made ​​a strong rise, wait for a reversal candle. As the market retrace back to 50% level most of the time. His strategy and validates.

Vcardozo avatar
Vcardozo 15 Mar.

good job

lazarojr avatar
lazarojr 16 Mar.

Thank you Vcardoso! If have any question just ask. Good luck and trade well...

projectx44 avatar

A well written article about Fibonacci Trading Strategy, iit's going to be very useful for the Forex Community.....

Sohey avatar
Sohey 18 Sep.

Have you thought about using Gann angles with Fibonacci?

orto leave comments
Every trader should well be aware of
the levels at which he should exit from the trade even before entering the
transaction and that is known as the ‘Exit policy’. It is always a
difficult decision to come out of the trade, either in red or in green. Closing
the trade is more of an emotional decision than opening the trade which is more
of a spot-on decision.  Our traders buy in haste and repent in leisure.
As we all know, there are only two
possibilities in a trade-either it is profit or loss. The trader should take
the decision to fix the timing of exit in either case. If in profit, when do we
book it and in case of loss how long should we wait-these are the questions to
be addressed by the exit policy. Even when the trade is in green, it is
difficult to decide the level at which the profits may be booked. Often the
investor is tempted to get on with the trade with still more profit
expectations.  If the trade is in
loss, the trader cannot carryon with his trade to a longer period as he is at a
risk of losing the capital.
Here the Fibonacci retracement comes handy
in identifying such targets & stops which can also be used as potential
support & resistance areas. Most of the forex…
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rkansaaa avatar
rkansaaa 28 Jan.

very east to understand.

kiranrkr avatar
kiranrkr 30 Jan.

yes fibo levles ARE PLAYING IMPORTANT role in my trading system thanks for ur article

Nagapati avatar
Nagapati 30 Jan.

nicely explained...

siddaraju avatar
siddaraju 31 Jan.

fibo nicely explained with good examples

Jalalmuhammed avatar

V. Nice.

orto leave comments

I might not be George Soros, who was able to anticipate huge
instantaneous market movements with sniper accuracy, but I certainly have had
my own share of predicting and catching significant pip movements in the
foreign exchange market. As we all know, Intervention by central banks is a
major market mover which can cause huge instantaneous price changes in currency
trading.  Last year, I was oblivious of
this fundamental, and I lost a huge chunk of money during the Bank of Japan
Intervention. This negative motivation spurred me into looking for a way of
figuring out and anticipating interventions with sniper accuracy. My last
prediction was the last intervention by the Bank of Japan, but unfortunately, I
missed it by a couple of hours( I didn’t want to keep my position open over the
weekend, and they took me unawares by intervening a couple of hours after
market open while I was still sleeping). I am about to make another prediction,
but this time, it is the next SNB intervention which is fast approaching. If
you want to know when it will happen, just keep reading!
KNOW: well, they are no more secrets because I am about to unveil them to
you. It takes a lot of m…
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skytrader avatar
skytrader 14 Dec.

+1, the last SNB action killed my contest account a few weeks ago! that was not nice at all.. i was fully loaded, but on the wrong FRANC side.. haha, that was fun... the fastest test account blowing ever.. nice article prophet!

emmax avatar
emmax 14 Dec.

Great! this is excellent man! keep it up.

skytrader avatar
skytrader 15 Dec.

seems like there wa sno intervention today... i mena how high do they think they can push the euro agains CHF artificially???

MyiDEA avatar
MyiDEA 18 Dec.

Article contest good for learning...good wishes for this competition...

ritesh avatar
ritesh 22 Dec.

Wishing you a very happy and prosperous New Year. +1

orto leave comments