How To Use Fibonacci in Forex Trading

Understanding Fibonacci Retracement by Ipek Ozkardeskaya of LCG http://www.financial-spread-betting.com/spreadbetting/LCG-compare.html Fibonacci levels are commonly used in determining technical levels in forex and indices trading. In this video, learn how to apply Fibonacci retracements to your trading. The Fibonacci sequence is a series of number that seems to constantly occur in nature.

Comments

1. a great study made by Brent Penford is done on 36411 swings in order to get the probability of a retracement levels, this study concluded that the retracement level (38.2) acted as a valid level for (0.6%) of the time and (50 level) acted (0.7%) of the time and (61.8) acted (0.7%) of the time; He concluded that these levels Hold as much as almost any other level, He stated clearly that one shouldn't rely 100% on these levels.
   My opinion, when i saw the study i agreed and disagreed with Brent Penford; If you saw the histogram concluded from the study you can see that the level range of (38.2 to 61.8) is strong as a ZONE but not as individual levels. one can rely on this zone to increase the probability of a retracement and if price moved beyond this zone you can ignore this as a retracement.
   you can find the study in the book"The Universal Principles of Successful Trading"
2. Fibonacci series starts with 1 and not 0!!!