Fibonacci Forex Trading

Posted by on February 26, 2010 under forex trading | 25 Comments to Read | How to make money in Foreign Currencies using Fibonacci Retracements and Fibonacci Profit Targets.

  • leveragefx said,

    Fibonacci Levels work on all time frames but only on swings of 25+ pips. We use Fibonacci levels to time entries but mostly as high probability exits. Our Total Strength currency meter shows us the strongest currencies to buy and weakest to sell and we use these Fib targets to know most likely MAXIMUM profit. I’d say 70-80% of the time price doesn’t move past the 1.618 Fib Target level.

    Many of our traders also use Fibonacci Clusters in conjunction with other support/resistance levels.

  • HOW2GetFREEforexROBO said,

    How does this system work on intraday?

  • leveragefx said,

    Keep in mind this is ONE part of our overall strategy and is NOT even in my favorite Top 5 tools! Mainly we use our Total Strength currency comparison tool and simply look for buys in the strongest currencies and sells in the weakest. Come to our 2 weeks free forex classes to learn this far easier and much more profitable system!

  • leveragefx said,

    We have many other tools we use which show us the currencies STATISTICAL strength/weakness and that tells us the odds of it hitting the profit targets. We also always trail a stop to get us out with smaller profits when targets aren’t hit. You can also draw trendlines under the lows of the up bar. There are 3 other exit methods we use, feel free to come to our 2 weeks of free classes and learn them. Impossible to fully explain here without you seeing our charts.

  • ExactTrading said,

    How do you take profits when price does not reach the extension targets ? Thx

  • leveragefx said,

    Absolutely. We teach in our classes clusters of Support/Resistance including Fib clusters you’re referring to ( Fib Retracements and Targets) + Previous Days/Weeks/Months highs & lows, & Weekly / Monthly Pivots. A cluster for those who don’t know is when MULTIPLE areas of support/resistance are within a tight 10 to 30 pip area or zone. Markets typically reverse at these.

    In fact we do this multi time frame analysis each day for all of our mentor students and the ZONES show up on the charts.

  • luckyload3r said,

    you ever use fibonacci clusters? much better

  • cherylish1 said,

    impressive….I want to learn more. This is a great video- well done easy to understand & you keep it simple- thank you!!

  • JudiBeaver said,

    Your video is really informative and your explanation of Fibonaccis is excellent.

  • leveragefx said,

    That’s easy. We use our trend identification tools FX Multimap which shows statistical strength/weakness and also FX Power Index which shows % of currencies that support buying/selling.

    IF on the pullback to the fib level there is not much weakness on these tools and the previous move up had HUGE strength then we look at the 38 to 50% fib level to buy and the EXACT entry is when trendline over the highs gets broken! Reverse for shorts. Call us and I’ll give you a week of our classes free.

  • yusofhardy said,

    How do you differentiate between retracement and reversal?

  • masmir016 said,

    Great , very clear and simple explaination
    on Fibonacci Retreacements, easy to understand

  • sbusz said,

    nice tutorial. liked how you kept it simple so even a noob like me can understand

  • smklakken said,

    Excellent explanation of Fibonacci

  • CurrencyCafe said,

    I run a hedge fund and Fibonacci trading is the backbone of my trading. This is an excellent video.

  • wwwForexsigcom said,

    The Fibonacci strategy can be very profitable if you know how to correctly implement it.

  • leveragefx said,

    Our TopGun Software NOW HAS AUTOMATIC Fibonacci thanks to our new Visual Basic Programming language and one of our happy customers Reza who spent hundreds of hours programming AUTO Fibs! Thanks Reza, now ANYBODY can properly use Fibonacci

  • leveragefx said,

    Yes, this is exactly what we teach our traders. There are indeed Fib patterns off of different time frame trends and when they line up they are called FIB CLUSTERS. Buying Fib cluster support or selling Fib cluster resistance are some of the highest probability trades.

    We also teach which Fib level to buy/sell based on our FX Multimap trend strength and where the currency is on longer term charts.
    Our new FX Power Index trend tool also improves accuracy.

  • midwesttransplant said,

    With have competing Fib patterns (for ex. one that forms over a couple of days vs. one that forms over a couple hours), how do you know which to trade. I was just stopped out on a trade from a strong short term down trend on a bounce to the 61.8 level (I shorted) but realized that the low was actually the 50% retracement on a big 2 day move and the market kept moving up.

    Is that the kind of thing that you think accounts for many busted Fib trades(or news of course).



  • flipearl13 said,

    amazing video! the key to fibonacci trading is identifying which highs and lows to trace. watched this video over and over for a week and i’ve been making an average of 30pts each time i get in. try using the macd together with this and you may see a signal for a great retracement.

  • StrikeData said,

    Great video! simple and easy even for a newbie like me to understand. Excellent work!

  • takadapapa said,

    great video. Thank you.
    5 stars!

  • forexbrotherhood2008 said,

    hello thanks nice info

  • forextrainer said,

    very nice video

  • leveragefx said,

    Time frames to use Fibonacci are irrelevent in my opinion. A swing as defined as a movement up or down can be seen on 1 min chart, 5 min, 60 min, etc. What you should do in using Fibonacci is make SURE that the swing is at least 20 to 30 pips. Fibs don’t work well at all on tiny 10-15 pip moves. And on more volatile currencies such as GBP/JPY use 30-40 pip swings MINIMUM. Again the swing is the swing so timeframe of chart isn’t relevent for day trading. For swing trades use 60, 240 or daily.

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