ARCHIVE Fibonacci Forex Trading Strategies for Beginners | DailyFX.com

Can you use Fibonacci as a leading indicator? http://www.dailyfx.com/forex/education/trading_tips/chart_of_the_day/2013/04/05/FibonacciAsLeadingIndictor.html Fibonacci Numbers and Forex Trading The Fibonacci number sequence is a mathematical phenomenon discovered centuries ago that traders use to analyze financial market movements. This video covers the significance of Fibonacci numbers and ratios in history, nature and finance. Topics include: • Examples of Fibonacci extensions in forex trading • How to identify trends • How to use different extensions within different strategies Forex and Fibonacci indicators In forex trading, Fibonacci retracements can identify potential support and resistance levels. The most important number or ratio is the 61.8% or .618 levels. There is also a 1.618 extension along with 2.618. From a trading perspective, the most commonly used Fibonacci levels are the 38.2%, 50%, 61.8% and sometimes 23.6% and 76.4%. In a strong trend (which we always want to be trading), a minimum retracement is around 38.2%. In a weaker trend, the retracements can be 61.8% or even 76.4%. A complete retracement or break of 100% of the prior move would nullify the current move. Learn how to trade trends with Fibonacci; http://www.dailyfx.com/forex/education/trading_tips/trend_of_the_day/2013/02/22/Trade_Trends_with_Fibonacci.html The Fibonacci Retracement trend line The base of the trend line should be drawn from left to right. If there is a bullish trend and you're noticing a retracement to the downside, then you want to look for support at one of the levels appearing on the chart. If there is a bearish (down) trend and a retracement is taking shape then you'd want to look for resistance. With any trading methodology it's impossible to guess future price moves with perfect accuracy. The next best thing is to watch levels of support and resistance closely. Once you notice a strong move off of support in an uptrend or resistance in a downtrend, you can use further levels of resistance as price targets. Fibonacci expansions and extensions can be effective leading indicators of price targets once a retracement level is honored. Deciding which tool to use is a personal choice for price targets -- both methods have their benefits. Because this tool is taking you into new price territory, trailing stops are recommended along with the proper trade size for effective risk management. Subscribe to the DailyFX Youtube channel to get more information on how to apply forex Fibonacci indicators to your trades; http://www.youtube.com/user/DailyFXNews

Comments

1. I have traded By just seeing videos and and at the same time learning from the internet, but that didn't lead me anywhere
2. but why the 100 level sometime in the down some time the up
3. This guy is joke.....he should explain how he picked point B???? there are high points along that move up that could have been point been, Point A should have been the cycle low that can be seen below point B. This guy is just another non trader babbling some shit he's read somewhere. Fib's are all about knowing where to start the A point and the B point. In this case he's dead wrong and is failing to explain why he picked those two points.
4. The best signals here +Philip Doak
5. haha this guy is an idiot
6. I personally don't use Fibonacci. Some traders like to use this but I follow price action to determine when there is a supply / demand imbalance. This can then be used to predict future price movement. If you want to learn more about my strategy or follow my trades, please visit my channel
7. These guys are a joke. Horrible presentation.
8. Interesting
9. Great thank you!
10. Thanks for posting this!!! I'm trying to learn everything I can.
11. When drawing a trend line are we supposed to cross through prices? I thought we were supposed to draw the line from the lower low to the higher low in an uptrend without touching the price itself on the candles?
12. well, let me tell you something. Φ is the golden ratio as its described in the video. Φ is a greek letter. Fibonacci got those numbers from the ancient greeks - not his discovery. Search google for Φ applied in the building of the parthenon for proof
13. very helpful!
14. Good Input
15. If you died , Im sure , someone , somewhere , will be so happy ...so make a person smile today and get hit by a bus:)
16. nope.
17. spaaaam boooott!
18. thanks !
19. I've not heard of that method but am using bullpips to great effect. It is simple and very effective at gaining pips (search "bullpips" for info)
20. I hope no one paid them for their services......lol.... They don't know what they are talking about.. What the heck??????? Who are these people?????