| How to trade Foreign Currencies using Fibonacci Retracements and Fibonacci Profit Targets.
Can anyone confirm if price retraces most accurately off the 50% I hear 80% of the time to a continuation than 61.% which happens 20% of the time? Also, if price breaks or reaches near 78.6% price is preparing for a reversal in the trend anyone got experience of this thanks.
@sactemp777 One reason I primarily trade Forex is because I have tools that show in real time what the momentum is and trailing stops that are also based on this. Thus once in a trade and momentum is strong its likely to continue but when not I exit with small loss, break even or sometimes 5-15 pip profit. The KEY to trading no matter what you trade is small losses and BIGGER wins. So for stocks, find its ATR and good profit is 20-35% of its Average True Range.
@FXHEROS The STRONGER the move, the more likely the 38% fib will be support. I prefer taking the 50% level and sometimes scale in at 62% level with stop 5-10 pips outside of that. That’s for INTRADAY fibs but for Fibonacci levels off of longer term multi day or week moves rules totally different. This video is for intraday trading only, see our website for our longer term strategies.
@ForexMaster100 This video was done 5 years ago! Our systems now are much more advanced and we have statistical tools that show REAL TIME trend. So where in past we’d buy 50% level we now more often buy 38% fib if move back to it had less momentum than the previous TREND move momentum. If trade fails we lose 8-12 pips and look again at the 50% and 62% levels BUT ONLY if momentum makes sense and we also look at DAILY/WEEKLY/MONTHLY stat trend. If today’s trend AGAINST weekly we pass!
Many people call or email me that Fibs don’t work, all you need to do is watch our videos, classes, and daily forex blogs to see Fibs in action. Look at EUR/USD swing low around Jan 12, 2012 and high at Feb 9, 2012, where did price go before it found support and reversed up 300 pips? The 50% FIBONACCI level we taught 5 years ago and still use as a smaller part of our systems now. Only people who think fibs don’t work do not know how to use them.
@leveragefx Thanks for the guidance . . .
WHY is this supposed to work in the first place and if it works how come the market does not become efficient to this „exploitative opportunity“ considering so many traders are supposed to use these fibonacci based strategies?
i think ths guy is the best guy in forex market actually!
I found this information very informative. It has made me think twice about using the fibonacci rules for my trading. I will have to incorperate these thoughts into my own ebooks.
thank you very much
i like fibs but i dont know how to use them lol. still learning.
Price action trading is the way to go I have discovered though I must admit that I still use fibonacci as a guide with the pipdaq setups. They work really well together…
Excellent fibonacci video, thanks for the all the info helped me out a ton. Going to sub!
Retracements by far are a great confirmation tool to add to your already existing signals, especially on larger time frames.
Hmm, interesting question. I suppose that you would have to do a ton of backtesting to confirm whether it does off the 50% to the 61. However, who has the time? Other factors also play strongly into whether price action will retrace at certain Fib levels. Take care…
Do you only wait for the nearest consolidation area on downward trends or upward trends as well?
If you really want to earn money with forex trading you should try this! It worked for me at least! http://tinyurl.com/km29vlb
I used to think fibs were a load of crap but its strange how price seems to gravitate to these areas
Nice one ! Finally I can learn how to use Fibonacci! It’s kinda confusing at first. I hope I can learn more.
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