Trading the Fibonacci Levels Introduction

1000Pip Climber Forex System

Artificial Intelligence Forex Trading Software

Get Instant Access

The Fibonacci levels are a very powerful tool in trading forex. They can be traded in isolation or in combination with other signals, for example candlesticks, indicators or chart patterns. In this book we will use confirmation signals for entry and exit points. (Chart Patterns and Candlestick Patterns are covered in more detail in "Guide to Prof able Forex Day Trading" which is available from www.forextechniques.com).

Buy setups include bullish engulfing candlestick, morning star, tweezer bottom, double bottom and a break of the high of an inside bar. Sell setups include bearish engulfing candlestick, evening star, tweezer top, double top and a break of the low of an inside bar

The methodology will be demonstrated using real examples using charts and explanations.

One can apply these methods on any time frame from 5min charts through to weekly charts.

When putting Fibonacci levels on the charts, one must look back on each time frame for significant highs and lows. This may involve lookng back days and even weeks. There are traders trading all the different time frames so Fibonacci lines drawn on weekly or monthly charts will affect the market. Convergence of different Fibonacci levels may occur from levels paced on the different time frame charts. Where convergence occurs, the levels become more significant. It is important to look for convergence with Support and Resistance Levels and Trendlines.

Was this article helpful?

0 0
Forex Trading Manual

Forex Trading Manual

In  any  business  or  moneymaking  venture,  preparation  and foreknowledge are the keys to success.   Without this sort of insight,  the  attempt  to  make  a  profitable  financial  decision can only end in disaster and failure, regardless of your level of motivation  and  determination  or  the  amount  of  money you plan to invest.

Get My Free Ebook


Post a comment